The Hollebeekhoeve of Kruibeke, our country’s first CO2 neutral dairy producer, has declared bankruptcy. More milk producers are expected to follow, according to the dairy federation.
De Hollebeekhoeve, a producer of milk and yoghurt under its own brand name as well as for grocery networks’ private labels, has declared bankruptcy. The company had made significant investments to become the first dairy producer in our country to achieve CO2 neutrality by the summer of 2020, but it lost 1.8 million euros on a turnover of 12.2 million euros in the same year. The large investments became a burden, and the fast increase in energy and other manufacturing costs proved too much.
The Hollebeekhoeve is not a unique event, according to the Belgian Confederation of the Dairy Industry (BCZ). “Most manufacturers of drinking milk, also known as milk in bottles and briquettes in the industry, are currently losing money,” explains Renaat Debergh, Managing Director of BCZ. “In a year, their manufacturing expenses per liter of milk increased by 22 cents, a 40 percent increase.” In October, they received only 4 cents per litre more in price discussions with retail chains. However, following then, the costs began to skyrocket. Retailers refuse to revise contracts that have deteriorated into strangle contracts. They are concealing themselves under ongoing price discussions, but the outcome will not take effect until June 1st. And for some businesses, that may be too late.”
According to Debergh, the end of the price hikes is still a long way off: “The true milk price is progressively reaching 50 cents per litre.” It was still 47.04 cents in the month of January. By way of perspective, it was 33.25 cents a year ago.”
Meanwhile, there’s reason to be optimistic for the Hollebeekhoeve’s 25 employees in Kruibeke: our editors confirmed that talks with a potential buyer are in the works.