Germany’s Hochwald plans expansion

Hochwald, the largest processor in southwest Germany with almost two billion kg of milk delivered in the last financial year from 7,800 suppliers in Germany, Luxembourg and France, has announced a EUR40 million expansion programme for the next 10 years.
In July the cooperative dairy, which exports to 90 countries, reported a 15% drop in turnover with EUR1.058 billion earned in 2009. Badly hit was the co-op’s huge export trade in long life milk, coffee cream and cheeses, which dropped 13.8% on the year to 34.5% of total turnover.
Despite the hard year, further expansion is definitely planned for Hochwald as a natural continuation to the last 10 years of continual growth which saw investment in the area of EUR100 million, according to Hochwald CEO Dr Karl-Heinz Engel. He emphasises the dairy’s need for more milk by announcing no restrictions to milk purchase from expanding suppliers – even after the stopping of production quotas in 2015. During 2009 an extra 60 million kg of milk was processed. Output was increased for the Hochwald speciality of canned condensed milk from 28% of turnover in 2008 to 31% in 2009. Cheese, butter and milk powders made up 16% of turnover (20% in 2008) while fresh milk products and ESL milk remained stable at 21% of turnover.