The two co-ops agreed that Milcobel would collect 180m litres of milk annually from 443 FrieslandCampina suppliers late last year.

More than 300 farmer suppliers switched their milk to Milcobel but 106 opted to transfer their supply to Laiterie de Ardennes, a co-op that was formed from the merger of two Belgian co-ops in 2010. The other 28 suppliers will decide to exit production or switch before July this year.

The transfer is driven by the fact that Milcobel is capable of processing the extra milk because of recent investment in Mozzarella and powder facilities, while FrieslandCampina’s processing capacity is stretched with increased EU milk production.

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