Dutch-Belgian Dairy Cooperative Faces Mounting Financial Challenges
Today 8:00 amโ – Klaas van โขder Horst
The Milk โคTrading Company โค(MTC),a cooperative โserving โฃdairy farmers inโค Belgium and the Netherlands,is navigating a period of significant financial strain,according to its recently published annual report. Theโฃ cooperative experienced losses in 2024, dwindling reserves, and a concerning decline in the volume of milkโค covered byโข its programs, while simultaneously facing a legal โclaim from former members.
The report highlights that the โdecreasingโ number of participating farms necessitates a essential โฃshift in the MTC’s operational model. The board of directors has โฃinitiated an โฃexploration of revised working methods to be โขimplemented by the โend of 2024, signaling a potential “MTC 2.0” restructuring, though specific details remain unclear.
Adding to the โfinancial pressure, the cooperative’s auditor flagged a potential loss in an ongoing appeal brought โby a group of former members. A negative outcome could require the MTC โto pay over โฌ227,000. โข The cooperative’s limited assets and declining income – driven by membership losses and reduced demand for โคmilk priceโ fluctuation coverage dueโข to โขcurrently favorable market conditions – raise questions about its ability to meet this obligation.
Future losses Anticipated
The situation is projected to worsen in 2025. โคโค Milk prices were fixed at approximately 45 cents per liter, considerably below current market rates. This discrepancy will likely result โin further losses forโค bothโ individual members and theโ cooperativeโ as a whole, as members will be required toโค contribute fundsโ to cover the price difference ratherโ thanโ receiving a payout. This โฃwill further exacerbate the MTC’s already precarious financial position.
Legal expenses also contributeโข toโ the financial burden. While two legal proceedings against members โand a former director have been resolved, an appealโค remains outstanding.
the role of Dirck Coucke,a key figure in theโฃ MTC’s history,is also under scrutiny. He has formally retired and is no longer mentioned inโค the annual report, however, Belgian media reports suggest he remains involvedโข inโ the cooperative’sโฃ affairs.
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About the Author:
Klaas van der Horst is a dedicated observer of the โdairy market, โproviding news and analysis of key developments.