Uelzena Turnover Impacted by Low Market Prices For Dairy Products, But Sales Volume up by 21%

636034000347593318claus-peter-witt-22.jpg

06 Jul 2016 --- Dairy giant, Uelzena Group have announced a growth in all strategic areas of business, as well as increased milk processing, increased number of employees continued environmental improvements. However, low global prices for dairy has impacted business turnover, dropping 6% YOY.

Due to the dairy market situations, the Uelzena Group was not able to maintain last year’s sales level, with revenue falling by six percent to €526m. However, the sales volume for the main product groups rose by more than 21 percent.

The largest product segment with a 32 percent share of sales was milk powder, followed by butter and butterfat with 21 percent. The expanded sales volume for milk powder is the result of strategic cooperation of the four cooperatives that joined forces in the milk powder plant MTW Norddeutschland GmbH, Neumünster.

Anja Brand, Product Manager at Uelzena told FoodIngredientsFirst: "In our observation there are regular cycles of price fluctuations for dairy products and dairy ingredients (each 4 or 5 years). Actually the prices are very low but we expect them to consolidate and increase in the next months. And the volatility of prices is generally bigger since a few years. The actual low market prices will influence the milk producers and farmers because of the lower payment for the raw material milk and we expect them to decrease their milk production."

Non-dairy specialty products, which includes instant beverages, health foods and contract manufacturing, generated a six percent growth, with these segments now contributing to 21 percent to the overall group sales. Actions taken to the focus the business on these industrial customers are thought to have lead to the overall increase in sales.

The cheese, sweetened condensed milk and dairy products for the delicatessen industry products were cut back slightly because of market prices. Milk price payments had to be reduced by 8.4 ct/kg to 29.19 ct/kg due to the poor market situation in 2015.

Other successes were also reported. Milk processing increased, with 528m kg of milk processed and the delivery of milk raw materials rose by almost 4 percent to a new record high of approximately 528m kg. The number of employees also rose, increasing from 655 to 663.

In terms of environmental factors and sustainability, the Uelzena Group also reported success. Compared with the reference year of 2012, the wastewater volume was reduced by 14 percent, the wastewater load by 26 percent and CO2 emissions by 49 percent.

The company emphasized that these environmental improvements were highly important, stating, “an integrated business strategy aimed at sustainability does not only secure the broad acceptance of milk production but is also required for success in the industrial customer sector.”

They continued, “An increasing number of brand producers take sustainability criteria into consideration in the selection of their suppliers.”

Brand added: "We see a worldwide significant demand growth for foodstuff and food ingredients. Especially ingredients like milk powder and milk fat “Made in Germany” or “Made in Europe” are known and valued as quality products in foreign countries and the demand is still increasing. We are specialized as a supplier for industrial customers since decades now and therefore we are known as reliable partner for the food industry and a milk specialist. Our aim is to make our customers successful."

by Hannah Gardiner

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Food Ingredients News

Dual food: Testing protocol compares quality across EU

16 Jul 2018 --- The European Commission has released a new common methodology for comparing the quality of food products across the EU to allow national consumer authorities to test the characteristics of food products sold with similar packaging across the Union. It has been developed by the Joint Research Centre (JRC), the European Commission's Science and Knowledge service and will help protect European consumers from misleading marketing about the food they eat and the products they buy.

Food Ingredients News

Barry Callebaut hails volume growth “significantly above global chocolate confectionery market”

16 Jul 2018 --- Barry Callebaut has released its nine-month key sales figures for the fiscal year 2017/18 which has shown good group momentum and volume growth that is significantly above the global chocolate confectionery market, according to the company. In the first nine months of fiscal year 2017/18 (ended May 31, 2018), the manufacturer of high-quality chocolate and cocoa products grew its sales volume by 6.9 percent to 1,512,853 tons.

Food Ingredients News

Reb M capacity increase: PureCircle expands production of its Starleaf stevia


16 Jul 2018 --- Producer of stevia sweeteners, PureCircle, has expanded its capacity to supply significantly more Reb M to global beverage and food companies. Using beverage sweetening as an equivalized example, PureCircle can now supply enough Reb M to sweeten approximately 500 million cases of zero-calorie carbonated soft drinks. The company continues to build production capacity and estimates that three years from now, it could supply enough Reb M to sweeten 1 billion cases of zero-calorie carbonated soft drinks or the equivalent in beverages and foods using Reb M as the sweetener.

Food Ingredients News

Sustainable food policies: Major food players launch US alliance which will “shape what people eat”

16 Jul 2018 --- Four of the world's largest food companies have launched the Sustainable Food Policy Alliance, a new US organization focused on driving progress in public policies that shape what people eat and how it impacts their health, communities and the planet. Founding member companies include Danone North America, Mars Incorporated, Nestlé USA and Unilever United States. The four founding member companies have made broad updates to their portfolios in recent years, advancing issues like sodium and sugar reduction, responsible marketing, transparency and reducing their impact on the planet.

Food Ingredients News

Kaslink & Tetra Pak partnership: Transforming Nordic oats into plant-based dairy alternatives

16 Jul 2018 --- With plant-based dairy drinks trending strongly in Europe, Kaslink and its partner, Tetra Pak are “willing to take risks to stay ahead of the competition.” In the Nordic countries, oat is a common food ingredient. Oat-based drinks and fermented oat-based products are cereal-based products which are common in Asia where many products are based on soy, almond or rice. The global market for alternative dairy drinks is expected to reach US$16.3 billion this year alone, according to Innova Market Insights data, a dramatic increase from US$7.4 billion in 2010.

More Articles