DMK ice cream reorganises

Germany’s largest dairy group Deutsches Milchkontor (DMK) wants to re-arrange and strengthen its ice cream production. It will close down plants and invest in other plants.

“Prices in the trade for milk and milk products continue to fall. The majority of consumers are not willing to pay the fair price for quality food. As a cooperative, we have a responsibility to be economically successful in order to provide long-term job security for the employees and to be able to pay a competitive milk price. Our job is to secure the livelihood of 7,200 employees and more than 9,000 farmers. Therefore, we plan to close the outdated plants in Nuremberg and Recke,” CEO Josef Schwaiger of the DMK Group says.

Due to bankruptcy of Rosen Eiskrem in 2012, DMK took over the locations in Waldfeucht-Haaren, Nuremberg and Prenzlau to expand ice cream production. Now a plant in Recke will close by the end of this year and the plant in Nuremberg is planned to close by the end of 2017. Employees will be offered ‘socially acceptable solutions’ or continued employment at one of the other DMK locations.

Investment in the tens of millions is planned for the sites in Waldfeucht-Haaren, Everswinkel and Prenzlau. Modern production lines will enable new recipes, as well as the opportunity to reach new customers, the company says.

“The Russian embargo in 2014 has shown, how important it is to rely on a broad portfolio. DMK is able within the works to redirect the quantities of milk so that we can increase production of other areas in the short term. So that we can serve the market targeted and compensate fluctuations,” Schwaiger adds.