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Belgian dairy businesses Vache Bleue Group and Flanders Food Production (FFP) have merged.

A new business, European Dairy Company, has been formed as a result and it will have a combined annual turnover of around €500m ($526.2m).

The parties suggested the newly-formed business will be a “major European player in the dairy sector”.

Lillois-based Vache Bleue, founded in 1927, is known for brands such as
Vache Bleue, Dilea Zero Lactose and Valmartin, which are distributed in its home market and France.

The company also produces cheese in Germany and supplies products on a private-label basis.

Lommel-headquartered FFP, founded in 2003, cuts, grates and portions cheese and has “extensive expertise” in private-label products.

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In a statement, Free Vroome, the CEO of Vache Bleue, said: “By joining forces, we have obtained a strong position in the dairy market. This gives Vache Bleue Group access to FFP’s expertise and technology.

“We [will] exploit synergies, optimise investments and build a better position in all markets without losing sight of our Belgian roots.”

Axel Van de Poel, CEO of FFP, added: “The investment power of our new group enables us to deliver what customers expect: strong products, fast deliveries and high quality, supported by modern technology.

“FFP can now rely on its own cheese production in Germany and tap into new markets with Vache Bleue Group products. By pooling our expertise and focusing on growth, market expansion and innovation, we offer our teams the best opportunities to continue to grow together.”

European Dairy Company will operate from the parties' existing sites in Belgium, France, and Germany. Employees and the current management team will be retained.

The companies said further expansion plans are “on the agenda” to increase the production capacity of the various sites.