DMK and Arla consider further cooperation in milk powder

The task force has been commissioned to examine the usefulness of sharing and expanding the capacities of both businesses in light of the increasing supply of milk in the north German state of Schleswig-Holstein and in Denmark.

DMK has been looking for suitable partners in the northern region of Germany over the past few months.

Dr Josef Schwaiger, CEO and spokesman for the management board, said: “We have an efficient production operation at our Hohenwestedt site for milk powder and butter, which we could build up even more efficiently with other dairy companies.

“The necessary investments would amount to only 30% of the cost of building an entirely new facility. We have presented this offer to the dairies in Schleswig-Holstein, but the response from the industry has been rather modest.”

After a first phase of collaboration with Arla in the area of whey processing, the companies are taking the next step together.

Both companies have experienced specialists who are experts in the global trade of products with a long shelf life. Well-developed sales channels are essential in the highly competitive milk powder sector, in order to participate in the growing markets and to generate added value.

Peder Tuborgh, CEO of Arla Foods, said: “Our goal is to create a platform from which we can supply the expected growing demand for dairy products worldwide, especially in emerging markets. This is a big investment and by building this plant together we can work more efficiently and minimise the risk of the two companies.”

Source: Arla