FAGE – Dutch local authorities gave the green light for the construction of the new factory

Contrary to what happened in the previous 5 years, now FAGE’s plans to acquire a production unit in Western Europe are moving at a high speed.

The family dairy industry has already received the “green light” from the Hoogeveen city council to set up the factory on Dutch soil.

The € 150 million investment will be the first of its kind at the Riegmeer-Noord Industrial Park in Hoogeveen and is expected to be operational in 2024.

It is recalled that six years ago FAGE had solemnly announced that it was going to build a production unit in Luxembourg, but this plan never materialized.

The choice of Hoogeveen

In collaboration with the Dutch Foreign Investment Agency (NFIA), FAGE looked at several possible locations in the Netherlands to conclude that Hoogeveen is the place that suits it best. FAGE ‘s initial plans are to supply the European market with 40,000 tons of yogurt per year from the Netherlands. The project will create about 250 jobs, says FAGE.

Various studies are currently being prepared and a number of permits are required in order to create the appropriate infrastructure, which will be able to withstand such a large installation. However, the dairy industry has already signed an option contract for a 15-hectare plot with the municipality of Hoogeveen.

Smart and sustainable technology

FAGE aims to use the same smart and sustainable technologies as those in its production facilities in the USA. “This focus on innovation and sustainability fits in well with the Dutch agri-food sector, which is committed to building the world’s most innovative, sustainable and rewarding dairy chain,” said a report on the Invest in Holland website.

Close cross-party cooperation

Starting such a large project is a big business that involves numerous parts and extensive preparation. Hoogeveen Alderman Jan Zwiers explained: “Step by step, in close cross-party cooperation, a model has been developed for all aspects of the investment, including infrastructure, sewage, water supply, gas, electricity, etc.” .

The Dutch “triple helix” approach

The typical Dutch “triple helix” approach of cooperation between companies, research institutes and government is the key to the development of the agri-food and dairy industry, it is emphasized. Collaboration, innovation, talent and entrepreneurship laid the foundations for a strong dairy cluster with representatives from Arla, Aware, Danone, Fonterra, FrieslandCampina, Hochwald, Nestle and Yili. In collaboration with research institutes, such as the University of Wageningen Dairy Campus, these companies further improve their products and production processes.

Turnover over half a billion.

In 2020, FAGE reported sales of $ 521.3 million (approximately € 442 million based on the exchange rate at the reporting period) operating profit of $ 70.8 million (€ 60.1 million) and net profit at $ 43.4 million (€ 36.7 million).

It is noted that Fage currently has two yogurt production units in Metamorfosi, Attica and in Johnstown, USA, as well as a cheese unit in Trikala.