Belgian dairy industry achieves record turnover in 2022

The Belgian dairy industry achieved record sales of more than seven billion euros in 2022, an increase of 30 percent over the previous year. Despite these positive figures, however, there are challenges for the industry. The increase in sales is mainly due to higher prices, as dairy processing fell 1 percent. Many dairies struggled to pass on sharply increased milk prices to consumers.

Milk production in Flanders rose 4.5 percent, while Walloon dairy farmers maintained stable production. The higher milk price stimulated milk production in Flanders, while this effect was not observed in Wallonia. Nevertheless, the volume of milk processed fell 1 percent to 4.7 million liters. The growth of Belgian milk in milk processing from 80 percent in 2018 to 92 percent in 2022 highlights the strong link between the dairy industry and Belgian dairy farmers.

Disillusionment with attitude of retail

Although the volume of milk processed fell, the Belgian dairy industry's sales nevertheless increased. Turnover reached 7.07 billion euros in 2022, up 30 percent from the previous year. However, the sharp increase in costs, especially for milk and other raw materials such as energy and packaging, could not be fully passed on to the consumer market. This made for a difficult year, especially for dairy companies operating in the consumer market.

Social performance on the rise, however

Retail negotiations were disappointing, with a "cutthroat competitive environment" in the Belgian retail sector. Despite the challenges, employment and investment in the dairy industry continued to grow. The number of jobs rose 2 percent to 6,708, which is exceptional in the Belgian food industry. Investment also increased, from 169 million euros in 2021 to 180 million euros in 2022. The trade surplus doubled in two years to 488 million euros, indicating strong growth in dairy exports.

Despite difficulties and pressure on profitability, the dairy industry remains confident in the future, as evidenced by investments in capacity, packaging lines and energy-saving techniques. Maintaining a positive trade surplus and job retention highlight the resilience of the Belgian dairy industry.

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