DMK Focuses on Ingredients as a Strategic Growth Pillar

DMK succeeded in increasing its turnover from the ingredients business by 31 percent from 2010 to 2011. The company plans to continue this upward trend in the current year, because the ingredients business is one of the pillars of DMK's strategic growth. The whey business in particular contributes to this area’s healthy development.

21 Jun 2012 --- DMK processed 6.9 billion kilos of milk in 2011. At present, more than 1.5 billion kilos of its milk are already made into a broad portfolio of products for the food processing industry. The segment is under the responsibility of Ingo Müller, managing director of Ingredients/Central Quality Management/Research and Development.

DMK succeeded in increasing its turnover from the ingredients business by 31 percent from 2010 to 2011. The company plans to continue this upward trend in the current year, because the ingredients business is one of the pillars of DMK's strategic growth. The whey business in particular contributes to this area’s healthy development. At subsidiary wheyco alone, 1.4 billion kilos of whey are made into products such as whey proteins and lactose. That makes wheyco one of the largest whey processing companies in Europe. The company distributes the products worldwide and has access to market partners in the food manufacturing industry.

DMK also became the main stakeholder in DP Supply BV in February 2012. The Dutch ingredients specialist is one of the leading international providers of spray-dried coffee creamers and vegetable fat powders, and therefore an ideal fit with DMK's product portfolio. The company will focus on the development of innovative products and expansion of distribution activities in order to develop this business area further.

Cooperative deals are one strategic path towards improving value added.

Last year, DMK and Arla Foods formed a 50-50 joint venture, ArNoCo GmbH & Co. KG. A volume of 700,000 tonnes of whey per annum will be made into whey protein concentrate and lactose at the Nordhackstedt site.

Even today, a large share of the ingredients produced is exported, and the trend is going up. The current core markets are Asia, the Middle East and North Africa. To compensate for the major market influences that are putting pressure on sales volumes and revenues, DMK is focusing increasingly on the production of specialty products. The need is there, because manufacturers of confectionery, health products and baby food are constantly making new demands on the ingredients they use to improve their products. According to Ingo Müller, "Our goal is to increase the share of specialty milk- and whey-based products with very high requirements".

Speaking to the Annual Assemblies of the cooperatives Humana Milchunion eG and NORDMILCH eG, Dr Josef Schwaiger, CEO of Deutsches Milchkontor (DMK), summed up the company's first year in the market on a positive note. DMK, Germany's largest dairy company, aims to further expand its international business and will focus on cooperative deals.