DMK to Increase Stake in Dutch Specialist DP Supply

The Dutch ingredients specialist, which was founded by its current majority shareholder the Basic Supply Group BV, is one of the leading international suppliers of spray-dried coffee creamers and vegetable fat powders.

Feb 23 2012 --- German dairy group DMK Deutsche Milchkontor GmbH (DMK), which previously held 30 percent of the company, is to become the principal shareholder in DP Supply BV of Emmen, the Netherlands. The Dutch ingredients specialist, which was founded by its current majority shareholder the Basic Supply Group BV, is one of the leading international suppliers of spray-dried coffee creamers and vegetable fat powders. Alongside Food Basics BV, the company is a subsidiary of the Basic Supply Group BV and develops, produces and markets ingredients for the food industry.

Ingo Müller, the DMK managing director in charge of Ingredients, gives the reasons for this step: "The Ingredients business is one of DMK's strategic growth areas. We are already well established in the market with dairy ingredients like milk and whey powder and whey derivatives such as lactose, whey protein concentrates and animal feed. By acquiring the majority of DP Supply BV's equity, we are securing a new field of technology with a promising future outlook. There is excellent potential for development in the business areas of non-dairy ingredients, milk substitutes and fat powders, particularly in export markets - that's why we are going to expand these segments further at DP Supply BV".

Jan Buining, CEO of the Basic Supply Group BV, displays confidence. As the market newcomer, DP Supply BV has established itself successfully in the industry by innovativeness and reliability. "We are convinced that DMK will take the company further forward even when we withdraw from the management as planned in the second half of the year," says Buining.

Speaking to FoodIngredientsFirst DMK's Spokeswoman Godja Soennichsen said: “We regard the DP Supply BV range as a good addition to our portfolio with a promising future outlook. We cannot comment on our market strategy at the moment as we are just about to start the business. The formal acquisition took place already; the management of DP Supply BV’s withdrawal will take place as planned in the second half of the year. There are no changes planned regarding production or staff levels.”

Humana Milchindustrie GmbH and NORDMILCH GmbH joined forces in May 2011 to become the German dairy industry’s new number one player: DMK Deutsches Milchkontor GmbH, DMK for short. DMK has the backing of over 11,000 active milk producers supplying 6.8 billion kilos of milk. More than 5,500 employees at 23 factories make the milk into fresh dairy products such as milk, yoghurt and curd, cheese, milk-based ingredients for the food manufacturing industry, baby food, ice cream and health products. With a turnover of around 4 billion euros, DMK is also one of the top ten players in the European dairy industry.

By: Michael Holt