Laiterie des Ardennes

News Dairy

Less turnover, but more profit for LDA

July 3, 2024 - Klaas van der Horst

The Belgian dairy cooperative LDA generated over €200 million less turnover last year than the year before, yet achieved a higher net result. The milk supply also increased.

In 2023, the cooperative processed a total of 1.3 billion liters of milk, which was over 50 million liters more than the previous year. Meanwhile, the turnover decreased from €1.072 billion to €864 million. This was partly due to the high dairy prices in 2022, which significantly dropped the following year. The gross profit also decreased from €8.8 million to €5.7 million. However, after tax, €2.9 million remained, which was still €400,000 more than in 2022.

LDA saw the total balance sheet slightly decrease to €390 million, but at the same time strengthened its equity. Not only in percentage terms, but also in absolute terms (+€9.5 million). The paid milk price was lower last year than in 2022, amounting to €39.83 per 100 liters, based on Belgian legal standards. The number of members decreased by about 100 to 2002.

Acquisition of Hochwald's Stake
Although it did not happen in 2023, but at the beginning of this year, LDA also reports that the cooperative acquired the stake of the German Hochwald in Solarec. Hochwald invested in 2013, committed to supplying 50 million liters of milk annually to Solarec in Recogne, and together with LDA, established the joint venture ALH, which has now been dissolved.
LDA was and remains the main shareholder in Solarec. Other shareholders include Luxlait and 2 French cooperatives. At the end of 2022, LDA started operating a second factory in Baudour, where it produces mozzarella.

Klaas van der Horst

Klaas van der Horst is a senior market specialist in dairy at DCA Market Intelligence. He also closely monitors developments in politics and agricultural policy.