Hochwald reports below expected results

A 5.2% increase in turnover (from 2010’s record €1.16 billion) was reported by the Hochwald Group, which collects and processes milk from farmers in Germany, Luxembourg, Belgium and France at its giant Thalfang plant in Rhineland-Palatinate. However, even with this turnover the resulting profit was below expectations, according to chairman Dr Karl-Heinz Engel.

The 2011 margin is some 1.7% under the planned level – mainly because of higher input costs but also through a dip in demand for the Alpine cheeses produced by daughter company Allgäuer Alpenmilch. Despite this hiccup Dr Engel still reckons that cheese for export is the right way ahead for the Hochwald Group. Investment to exploit this potential will continue and should total around €100 million over the next three years. Alpenmilch will be receiving a share of the expansion cash but so will the group’s Hünfeld plant with around €16 m being invested there currently in increasing output capacity for mainly pasta filata and mozzarella.