FAGE redesigns $170 million Dutch yogurt plant and delays opening to 2030

Dutch project moves toward 2030

FAGE has revised the design and timetable for its planned yogurt factory at the Riegmeer business park in Hoogeveen, Netherlands. The approximately $170 million project is now expected to begin operating by the end of 2030 after repeated delays, according to Newmoney and OT. The plant is intended to supply European markets outside Greece directly and add annual production capacity of 40,000 tonnes.

Dutch rules governing nitrogen emissions prompted FAGE to redesign the facility to operate entirely on electricity, eliminating the planned use of natural gas, OT reported. Expected water consumption was also reduced from 2.5 million litres to 250,000 litres per day. The changes substantially alter the plant’s utility requirements while allowing the company to continue pursuing the project under local environmental constraints.

The postponement leaves FAGE more dependent on its existing Greek production base to serve expanding European demand. More than half of the yogurt and dairy desserts produced by the company in Greece already goes to foreign markets, Newmoney reported. FAGE invested $22.4 million in its Greek facilities during 2025, up from $12.2 million in 2024, and had commitments for approximately another $28.1 million over the following two years.

European demand accelerates

The new Dutch capacity is being planned against strong growth in FAGE’s European business. European sales rose 30.9% in 2025 to $366 million from $279.9 million, lifting the region’s share of group sales to 40.8%, according to OT. Sales value increased by 49.2% in the United Kingdom and 26.3% in Italy, while volumes grew by 43.7% and 16.6%, respectively.

FAGE says it ranks first in plain branded yogurt in both markets, with shares of approximately 24.9% in the United Kingdom and 21.9% in Italy. Greece accounted for only 9.5% of group sales value in 2025, but remained an important manufacturing center. Domestic sales value rose 13.1% even as volume declined 2.1%, and the company retained a 17.3% share of Greece’s industrially produced yogurt market by value.

The company is also narrowing its European portfolio. It plans to introduce FAGE Total 2% Lactose Free and expand ready-to-eat yogurt with fruit during 2026, while discontinuing Kefir and BeFree. The strategy concentrates resources on core brands and categories offering stronger growth and margins.

Record earnings support investment

FAGE International’s sales increased 19.1% to $898.2 million in 2025 from $753.9 million in 2024. Total volumes rose 15.4%, operating profit climbed approximately 83% to $261.9 million, and net profit increased about 85% to $208 million from $112.3 million. The gross margin improved to 52% from 46.9%, while EBITDA reached $298 million compared with $168 million a year earlier.

Lower raw-material costs helped the result: average milk prices paid by FAGE fell 14.3% in the United States and 6.4% in Greece. The United States remained its largest market, generating 59.2% of sales, with revenue rising 12.2% to $531.8 million. FAGE reports a 29.5% share of the US plain branded yogurt segment, while its Johnstown, New York, factory has annual capacity of 160,000 tonnes. Operating cash flow of $262.2 million and year-end cash of $148.3 million give the debt-light group substantial funding capacity, although the Dutch expansion will not relieve pressure on European production before the end of the decade.