High global milk supply and falling prices for commodity dairy products put pressure on FrieslandCampina’s earnings in the first half of 2026, whilst cash flow from operations, by contrast, improved markedly.

Dutch dairy company FrieslandCampina closed the first half of 2026 with an operating profit of €269 million, down from €363 million in the same period a year earlier. According to the company, the decline was due primarily to high global milk supply combined with falling prices for commodity dairy products.

Revenue was more than €6.8 billion, broadly stable compared with the first half of 2025, supported in part by the contribution from newly acquired companies Milcobel and Wisconsin Whey Protein. Net result came in at €138 million, against €230 million a year earlier, whilst cash flow from operations improved markedly to €292 million, up from €43 million in the first half of 2025.

Mixed picture across business groups
Professional and Retail & Americas saw volume growth but a decline in result due to price pressure. Asia turned its performance around, helped by a recovery in Indonesia, and Ingredients delivered growth driven by the protein markets and Wisconsin Whey Protein. Europe achieved higher profits, according to the company, driven by volume growth and market share gains.

Higher milk supply, lower price
Member milk supply rose by 18.5 per cent to 5,443 million kilograms, with more than half of the increase attributable to the merger with Milcobel. The guaranteed price stood at €40.49 per 100 kilograms of milk, against €55.63 a year earlier.

Member dairy farmers also received a total of more than €230 million for their sustainability efforts in 2025, in line with the 2024 level.

Expects improved result in second half
According to a press release FrieslandCampina’s CEO, Jan Derck van Karnebeek, said that the first half of 2026 was marked by a sharp imbalance in the dairy market.

“Global milk supply was high, while demand for commodity dairy products was lagging. This put pressure on prices, margins and our result,”, he said.

Jan Derck van Karnebeek also pointed to positive developments, including rising sales volumes and growth in higher-value-added products.

The company expects a higher result in the second half of 2026 than in the same period a year earlier, but stresses that the result remains sensitive to developments in supply and demand.

By Maja Løvstrup
Photo: FrieslandCampina