What’s next for the European lactosphère

Albert de Groot, the CEO of Vreugdenhil Dairy Foods (NL) since 2016, was elected as the new president of the European Dairy Association (EDA) in March this year at the EDA’s Dairy Policy Conference in Brussels. As the outgoing president Guiseppe Ambrosi commented, “The European lactosphère has elected an inspiring dairy executive, known for his leadership and his dedication to the industry. Next to his strong company experience, Albert has an impressive record of success in steering an industry association as president of our Dutch member federation NZO.”

Under his leadership, Vreugdenhil Dairy Foods (NL) has strengthened its position in the global market and now exports dairy excellence to more than 130 countries. In July 2023, de Groot was appointed chairman of the Dutch Dairy Association

(NZO). He spoke with Dairy Industries International about the issues facing the European dairy sector.

Q. What do you see as the biggest challenge facing your presidency of the EDA?

We are in a time of global tension, and our industry is facing a myriad of challenges that require our urgent attention and collaborative efforts – within the industry, across the dairy chain, and in close coordination with the authorities. The key themes for the nearest future for the dairy industry will be trade resilience, sectoral competitiveness and sustainability.

The challenge is complex, but let’s not forget that we have a very strong starting point with dairy. Milk is an important source of essential nutrients and plays an important role in a varied and balanced diet. And on top of that, it is delicious as well.

But to start with the key hurdles of these days, they are related to geopolitical tensions. We experience the impact of the trade deal between the EU and US, starting with the new tariffs by the US administration and the Chinese anti-subsidy probe. The European dairy industry has become entangled in political disputes between governments, Russia’s war on Ukraine has underscored the importance of supporting resilient food production and autonomy for Europe. But the success of our industry is closely tied to the European project, and we need European policies that strengthen the competitiveness and autonomy of our sector while supporting our transformation into an even more sustainable industry.

Q. How has the market changed over the past few years?

Over the past few years, the dairy market has really shifted. We’ve gone from expecting steady, predictable growth to dealing with a landscape shaped by geopolitics, protectionism and shifting trade deals. Instead of straightforward liberalisation, dairy trade is now often used as a bargaining chip in political disputes. A good example is China’s anti-subsidy investigation into EU cream and cheese exports, which could limit access to one of our biggest markets.

We saw tariff shocks during Trump’s second term, but then things calmed down with the Framework Agreement on trade between EU and US. That agreement lowered the risk of tariff escalation, but it also brought more competition for European producers here at home.

The new MERCOSUR and Mexico deals give us more opportunities in South America and Mexico and help reduce our dependence on markets such as China and the US. And we are of course looking forward to concluding trade agreements with other countries, like Indonesia.

Finally, beyond trade policy, we’re also working on making the dairy sector, and by extension Europe as a whole, more resilient and sustainable.

Q. How is tying together the interests of many different national dairy participants achieved at the EDA?

The dairy sectors in the member states have a lot in common. Dairy has a long tradition in the EU – it isknown for its high milk production and a wide range of diverse dairy products, renowned for their high quality.

Furthermore, we operate in the EU internal single market and the largest part of dairy trade is within the EU. The dairy industry is highly integrated in the EU.

We are aware that these strengths and communalities have positioned the EU as a leader in global dairy trade, with strong export markets that reinforce its economic significance.

Within EDA, we treat each other with great care and respect, based on our shared interests. It’s complicated now and then, as we all have different cultural backgrounds and different languages. But we overcome the issues, since we are all dairy.

Q. What key issues are the EU countries dealing with?

The European dairy sector is working on tackling the issues and takes responsibility to contribute to achieve the goals set, not only for biodiversity protection, but also for climate action and other environmental topics.

Although the issues in the Member States may not always be alike, the dairies have in common that they need a transition path that considers the nature and characteristics of the sector. It should at least consider that transition in agriculture takes time and will not harm other goals that also need to be achieved (for example, produce healthy and nutrient-rich food, security, that is economically viable and socially acceptable).

Historically, the dairy sector plays a vital role in enhancing and protecting biodiversity. The dairy sector develops practices aimed at soil management and renewal at farm level, such as, achieving a positive impact on soil, grassland and nature conservation. By managing the land, the sector significantly contributes to halting and reversing land degradation and contributes to biodiversity to prosper.

Now, there’s a lot of promising innovation happening in our sector in sustainability. We’re seeing real progress in areas like feed additives, better genetics, more balanced cow diets, and smarter nutrient management. They’re all a part of a growing toolbox that can keep the dairy sector both competitive and climate resilient. That said, we do need supporting EU policies and financial support to scale these innovations and make them accessible.

Q. What will be the effects of US tariffs on your members?

The new US tariffs are really a mixed bag for EU dairy. On the positive side, the deal takes away the risk of escalating duties, so it gives us a bit more predictability and stability in transatlantic trade, and that’s definitely good news for the sector.

Still, big challenges remain. Even though tariffs are capped at 15 per cent, some European dairy products that used to benefit from lower rates will face higher costs now. Plus, anything that’s exported outside the quota is still hit with those high US most favoured nation (MFN) duties, which makes it tough for European producers to stay competitive in the American market.

On top of that, the EU agreed to proposed to open a 20,000-tonne, tariff-free quota and another 50,000 tonne reduced tariff quota just for US dairy, which goes beyond what’s required at the WTO. That could create extra pressure, since other trading partners might turn around and ask for the same treatment. The risk is these reduced tariff quota may lead to all kind of blended basic dairy products, which will put pressure on the milk price for our EU farmers.

Overall, the move does give us some certainty, but it also brings more competition and a few constraints. The real challenge will be making sure it’s implemented in a way that keeps things fair for EU dairy producers.

Q. What in your background prepared you for being president of the EDA?

My background has prepared me for this role in several ways. I hold a Master’s degree from Nyenrode Business Universities, where I did my theses on sustainability leadership in the dairy sector. At that time I interviewed executives in the dairy industry globally. This gave me a deep understanding of the environmental, economic, and social challenges our industry faces.

One of the key questions I explored was: What are the most important capabilities that sustainability leaders in the global dairy industry possesses, to successfully handle current and future challenges in the dairy value chain, while creating shared value. In short, how can leaders in the dairy industry engage their people on the journey toward a sustainable and resilient future? The conclusion was an 8C model in which self-consciousness and intrinsic conviction were key drivers (as well as context, continuity, connectedness, creativity and collectiveness).

Through this work, I learned that engagement is not just about communication, it’s about creating ownership and shared purpose. One of the most important outcomes of my research and experience is the conviction that a collective approach is essential to achieve collective impact. Bringing diverse stakeholders together, aligning interests, and fostering collaboration have been central to my leadership style, and these principles will guide me as president.

Q. What do you consider your biggest challenge/achievement?

One of my greatest challenges is how to contribute to the mission of feeding the growing world population with healthy food. This is not just about producing more, it’s about doing so responsibly, sustainably, and with a focus on quality and nutrition. In the dairy sector, this means balancing efficiency with environmental stewardship and maintaining consumer trust.

What makes this achievement meaningful is that it requires collaboration across the entire value chain: farmers, processors, policymakers and consumers. I’ve worked to foster that collective approach, because only by working together can we create a resilient food system that nourishes people today and for generations to come.

Q. What does a typical day look like?
There really is no such thing as a typical day for me, and that’s what makes this role so exciting. I usually start my day early in the morning with a healthy breakfast that includes, of course, dairy. From there, my day can take many directions: meetings with clients, stakeholders, representing the sector in strategic discussions. In the evening I often have dinner with stakeholders, I try to have early dinners, so I will not be home late and have some time left to spend with my wife and my daughter, as she is the only one of four still being home.

Every working day is different, but they all share one thing in common: a drive to move the dairy sector forward.

Q. Outside of work, what are your hobbies/interests?

I make time for running and walking, and try to do this three times a week. On Saturday morning I go to the gym. I believe staying active, eat healthy helps me stay focused and energised. Furthermore, in the back of my garden I have a little brewery where sometimes we brew beer with my son and some friends. In the winter I love to go to the mountains for skiing. I love reading and exploring new things. And of course, my family and friends are important in my life.

Q. What’s your leadership philosophy?

Leadership, for me, is recognising the defining moments – the moments where you can make a real difference – and then having the courage and the capability to step forward.

It’s not just about having a vision. Vision is important, but leadership is about knowing how to operationalise it and how to turn ideas into reality. It’s about building coalitions, creating ownership, and bringing others with you. Because real change is never a solo effort. It’s collective.

That’s especially true in a diverse, interconnected sector like dairy. At the EDA, we represent over 13,000 members across Europe. I take great pride in being president of this organisation. I see it as my responsibility, and my privilege, to represent all of them: from the small family-run dairies in Italy or Belgium, to the large cooperatives in Finland or France. From privately owned companies to multinationals, we’re all part of one chain.

I’m not just president of the industry, I’m an elected president, chosen by the industry. That means a great deal to me. I’m here because of you. And that is responsibility I do not take lightly.

My leadership style is grounded in listening, aligning, and building shared purpose. When we move forward together, we move forward stronger.