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DMK Group acquires 100% of Russian RichArt Group

The DMK Group, Germany’s largest dairy cooperative, has extended its activities in Russia. With acquiring the remaining 40% of share in the IKAM Richart Holding GmbH, the DMK Deutsches Milchkontor GmbH thus is sole shareholder of the Russian cheese manufacturer RichArt Group based in the Voronezh region. DMK had already acquired a majority holding in RichArt in the second half of 2016. The Supervisory Board of DMK Deutsches Milchkontor GmbH yesterday agreed to the purchase of the remaining shares with immediate effect.

DMK’s result improves

The DMK Group, Germany’s largest dairy cooperative and fourth biggest supplier to German retailers, is seeing positive initial bottom-line results from the company’s ongoing restructuring programme.

Provisional figures show a rise in sales to 5.8 billion euros in 2017 (2016: 5,1 billion euros), the operating result improved to 29.5 million euros (2016: 13.5 million euros). The milk price paid to the farmers over the year averaged out at around 36.29 eurocents per kilo including all average bonuses and the dividend. This means that DMK succeeded in paying a higher milk price in 2017 than its average competitors. The company is to announce details of its results at the time of the Annual Assembly in mid-June.

Being Germany´s largest dairy cooperative, the DMK Group with around 7.000 employees proceeds milk at 16 sites throughout Germany and at two sites in the Netherlands. A further six sites are available for the manufacture of baby food, ice cream and health products. There is also an administrative facility in Bremen. With brands such as MILRAM, Osterland, Oldenburger, Rose, Dutch Original Cheese, Humana, Casarelli, intact, sanotact, hansal and NORMI, the DMK Group is an established name for retailers and consumers in Germany and all over the world. With a turnover of 5.8 billion euros, the company is one of the key players in the European dairy industry.

DMK Group och Arla Foods sluter avtal om mozzarellaproduktion

Arla Foods och det tyska mejeriföretaget DMK Group har undertecknat ett avtal om tredjepartstillverkning som kommer att innebära att DMK ska producera 35.000 ton mozzarellaost för Arla per år på anläggningen i Nordhackstedt. Detta kommer att öka tillgången på vassle för de två företagens joint venture företag ArNoCo. Som en del av avtalet kommer DMK bygga om anläggningen i Nordhackstedt med fokus på mozzarellaproduktion

Idag har DMK:s ostanläggning i Nordhackstedt en kapacitet på cirka 70.000 ton, varav hälften är inriktad på mozzarella. DMK kommer att investera 15 miljoner euro och i slutet av 2018 ska hela anläggningen producera mozzarella samt då starta tredjepartstillverkning för Arla.

Arla kommer att leverera 300‒350 miljoner kilo mjölk för produktionen årligen och kommer att betala DMK för att producera 35.000 ton mozzarellaost varje år.

Bad Year for DMK – Closure of Plants

Ingo Müller (CEO) was dissatisfied with the 2016 reporting period: ”We clearly fell short of our most important goal – to pay competitive milk prices. There’s no way to gloss over that fact”.

As a consequence of the dramatic turn in the market in 2016, many farmers have given up dairy farming. Members leaving Deutsches Milchkontor eG will mean the loss of around 1.7 billion kilos of milk in the next two years. The DMK GROUP is planning to respond to this situation with a new concept for its sites and for milk processing. This concept will involve stopping production at three sites: Rimbeck/North Rhine-Westphalia, Bad Bibra/Saxony-Anhalt and Bergen on the island of Rügen. There are also plans to discontinue slicing and packaging at an additional site, Nordhackstedt/Schleswig-Holstein.

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