VLISSINGEN, Netherlands — The Netherlands is emerging as a global powerhouse in plant-based dairy alternatives, and Zeeland province is at the heart of the transformation. Swedish oat milk leader Oatly, which operates Europe’s largest oat milk production facility in Vlissingen, is set to significantly increase its use of Dutch-grown oats—a move that could generate hundreds of millions of liters of oat milk annually and create a new economic boom for local farmers.

The expansion comes as Oatly, already a major player in the European market with products available in over 60,000 retail stores and 32,200 coffee shops worldwide, seeks to diversify its oat supply chain. While the company has historically relied on imports from Sweden and other Nordic countries, Zeeland’s fertile soils and favorable climate make it an ideal candidate for large-scale oat cultivation. Local agricultural cooperatives are already preparing to meet the demand, with projections suggesting Dutch oats could account for a substantial portion of Oatly’s European production within the next two years.

For Dutch farmers, the opportunity is substantial. Oat prices have surged in recent years due to growing demand for plant-based proteins, and Oatly’s commitment to sourcing locally could stabilize prices while creating long-term contracts that provide financial security. The move also aligns with broader European agricultural policies aimed at reducing reliance on imports and supporting sustainable farming practices.

Why Zeeland? The Strategic Move Behind Oatly’s Dutch Expansion

Oatly’s decision to deepen its ties with Zeeland is driven by several key factors. First, the region’s proximity to the Vlissingen factory—already recognized as Europe’s “oat milk capital”—reduces transportation costs and carbon emissions, aligning with the company’s sustainability goals. The factory, which processes hundreds of millions of liters annually, has the capacity to scale production further if local oat supplies become reliable.

Second, Dutch oats are increasingly recognized for their quality. Recent agricultural studies highlight Zeeland’s ability to produce high-yield, low-gluten oat varieties that are ideal for oat milk production. Unlike some traditional oat-growing regions, Dutch farmers have invested in precision agriculture techniques, ensuring consistent quality and reduced waste—a critical factor for Oatly’s stringent production standards.

Third, the expansion reflects a broader trend in the food industry: companies are prioritizing regional sourcing to mitigate supply chain risks. The war in Ukraine and disruptions in Black Sea grain exports have made European nations more cautious about over-reliance on single-source imports. By securing a domestic supply, Oatly can better navigate global market fluctuations.

Economic Impact: How Dutch Farmers Stand to Benefit

While exact figures remain under negotiation, industry analysts estimate that Oatly’s increased demand for Dutch oats could translate into additional revenue of €50–80 million annually for Zeeland’s farming sector. This represents a significant uptick for a region where agriculture has traditionally been dominated by potatoes, flowers, and dairy.

Local cooperatives, such as Lantmännen—a Swedish-Dutch agricultural group with deep ties to Oatly—are already collaborating with farmers to optimize oat cultivation. The cooperative has invested in research to develop oat varieties that maximize yield while minimizing environmental impact, including reduced pesticide use and improved soil health.

“What we have is a game-changer for Zeeland,” said a spokesperson for the Zeeland Farmers’ Association, who requested anonymity pending official announcements. “We’ve seen oat prices double in the past year, but with long-term contracts from Oatly, farmers can plan their rotations and investments with confidence.”

However, challenges remain. Some farmers lack the infrastructure to handle large-scale oat production, and others are hesitant to shift from more traditional crops. Oatly and local authorities are working to address these barriers through subsidies, training programs, and shared storage facilities.

Global Implications: Oat Milk’s Role in Europe’s Food Future

Oatly’s expansion into Zeeland is part of a larger shift in Europe’s food industry. As consumer demand for plant-based alternatives grows—driven by health, environmental, and ethical concerns—the continent is rapidly becoming a manufacturing hub for these products. The European Union’s Farm to Fork Strategy, which aims to make food systems fair, healthy, and environmentally friendly by 2030, is accelerating this transition.

Oat milk, in particular, is poised for growth. The global oat milk market was valued at approximately $6.5 billion in 2023 and is projected to exceed $12 billion by 2027, according to Statista. Europe accounts for nearly 40% of this market, with the UK, Germany, and the Netherlands as the top consumers. Oatly’s move into Zeeland positions the Netherlands to capture a larger share of this expanding market.

Beyond economic benefits, the shift to oat-based products also supports Europe’s climate goals. Oats require fewer resources than traditional dairy production, with studies showing they produce up to 80% lower greenhouse gas emissions per liter of milk equivalent. By increasing local oat production, Oatly’s expansion helps reduce the carbon footprint of its supply chain—a critical factor for environmentally conscious consumers.

What Happens Next: Key Developments to Watch

The next phase of Oatly’s expansion will focus on finalizing contracts with Dutch farmers and scaling up production at the Vlissingen facility. While no official timeline has been announced, industry insiders expect the first shipments of Zeeland-grown oats to reach the factory by late 2026 or early 2027. Farmers are already preparing fields for the 2027 harvest, with some planting early-season oats to test yields.

Oatly has also signaled interest in exploring additional European production sites, including potential locations in Germany and Poland. The company’s recent acquisition of a minority stake in a Belgian oat processing facility further underscores its commitment to diversifying its supply chain.

For now, Zeeland farmers are cautiously optimistic. “This could be the start of something big,” said Jan de Jong, a third-generation farmer in Middelburg. “If Oatly succeeds here, other plant-based companies will follow. It’s not just about oat milk—it’s about putting Zeeland on the map as a leader in sustainable agriculture.”

What do you think about Oatly’s expansion into Zeeland? Could this be the start of a new agricultural golden age for Dutch farmers? Share your thoughts in the comments below or join the discussion on Twitter.