News from the lab

From milk to brand: farm dairy as a revenue model

By April 16, 2025 No Comments

On March 4, 2025, we gathered at De Vosseburch farm in Langeraar with various cheese and dairy producers and dairy farmers interested in farm-based dairy production for the excursion “Farm Dairy as a Revenue Model.” The excursion was organized as part of the project Onder de Streep 2025, as a follow-up to Onder de Streep 2023. We were hosted by Eva Rademakers, who scaled up her cheese production from small batches for the farm shop to supplying a supermarket and several cheese vending machines.

Wide Variation in Pricing

Our colleague Myrthe opened the meeting with a presentation on market research into the prices of Gouda cheese. The research distinguished between regular Gouda, farmstead Gouda (made on the farm from raw milk), and organic Gouda (both factory-made and farm-made). The market study revealed a surprisingly wide range of prices for these types of cheese—more than the group had expected. Most farm dairy producers present set their prices based on historical pricing, wholesale rates, or prices seen in supermarkets, specialty stores, or other farm shops. Some base their prices on cost calculations, with the milk price playing a crucial role. Participants also shared their challenges in raising prices, as this is often perceived as uncomfortable. The balance between affordability for customers and covering rising costs remains an important topic.

Attracting and retaining customers

In addition to pricing, the importance of customer loyalty was also discussed. When the relationship with the customer is strong, price becomes less decisive. Gerard Schlingmann of Zuivelcoöperatie ZUCO, a dairy cooperative for farm dairy producers, elaborated on this further. He emphasized the importance of brand development for farm-based dairy producers: a strong brand not only increases product recognition but also creates a distinctive position in the market.

Dairy farmers who process their own milk do so with passion and craftsmanship. But in a time when consumers increasingly value authenticity, sustainability, and artisanal quality, a well-thought-out brand strategy is essential. A strong brand helps communicate the story behind a product and claim a recognizable spot in the market. A brand strategy starts with the entrepreneur: what is your goal, what do you stand for, and what do you want to achieve? It’s important to offer consumers a clear benefit, such as taste, price, or experience. While dairy farming and cheesemaking are skilled crafts, farm dairy producers are not necessarily equally skilled in marketing and sales.

Scaling up and consistent quality

Eva also shared her experience with farm dairy production. She started small, initially selling her cheese only through the farm shop. After a period of adjustments and growth, sales began to take off. Today, she supplies a supermarket via the Groene Hart Cooperative, as well as her own shop and several cheese vending machines. Recently, she invested in a new cheesemaking facility, complete with a cheese cellar, which further improved production. The consistent quality of her product is made possible by good equipment and an optimized process. The cows are milked using a milking robot, where double teat cleaning and a separate milk tank specifically for cheese production contribute to optimal milk quality.

The excursion at De Vosseburch offered a valuable glimpse into the daily practice of farm dairy production—from setting the right price to building a strong brand. It was an inspiring day for participants looking to grow and strengthen their farm dairy businesses.

Want to learn more about farm dairy as a revenue model? Send an email to myrthe@natuurverdubbelaars.nl.