Schwälbchen plans for 2017

The downturn in milk and cheese sales prices affected the 2016 result of the German dairy group Schwälbchen, but still things went well. Processing volume decreased slightly last year by 1.7% to 133.5 million kg compared to 2015. This was due to the fact that milk deliveries from own contract farmers had a consistently high share of 99.1%.  Even if the annual milk payment was below the previous year due to the market, an above-average disbursement performance could be achieved in the regional environment.

The company’s sales revenues went down by 7.2% to €85.2 million.  The consolidated total turnover of the Schwälbchen Group fell by 3.7% to €166.5 million. Investments totaled €4.2 million, and the number of employees increased by 395.

The start of 2017 looks to be more stable, but at the same time there are uncertain market conditions in Germany. The price level of many milk and cheese products is at a higher level.

Raw milk deliveries in Germany and neighbouring countries are still below the previous year’s figure. However, there is great uncertainty about how much milk will be produced this year, because the farmers’ response to better payout prices is difficult to predict.

As a medium-sized, regionally oriented company, Schwälbchen will not be able to escape the volatile and uncertain environment, it notes. This is why it working more on added-value products, it says. A key focus is distribution for its Green line, Caffreddo coffee beverages and Körfez brands. A media campaign through July will contribute to this.

In manufacturing, the filling and technical areas will be looking to further optimise to increase efficiency at the dairy.