Uelzena prepared for Covid-19

Verladezone Hochregallager - Uelzena-Gruppe

The Uelzena dairy group in Germany sees itself as well prepared for the challenges posed by Covid-19, although it will have an impact for the second quarter. However, the long-term investment strategy for securing the future should be maintained, the company states.

The lockdown affects not only in Germany, but also the rest of Europe and the whole world mean enormous shifts at all levels and, above all, the economy. Sales and revenues are under pressure, so the milk payment price will fall in response to the markets in the coming months, the dairy predicts.

The effects of the standstill also have an impact on the Uelzena Group and its four locations in northern Germany, where the milk of more than 800 milk producers is made into milk powder, butter, cheese and sweetened condensed milk.

Together with the employees the hygiene rules were tightened within a very short time and the contact options both internally and with third parties has been limited to the necessary minimum. Home offices, video conferences, working in small groups without shift transfers, wearing protective masks in areas at risk and increased disinfection measures have become part of the everyday routine.

“To date, no employee in the group has tested positive for Covid-19. We are grateful for that,” said HR manager Ina Hinrichs.

While home consumption has risen sharply, the out-of-home food business has almost stopped. For the Uelzena Group, this means a decline in sales in the business areas that are geared towards the baking trade and the out-of-home business, while the industrial business with milk ingredients continues to have good orders.
As a result, the production of instant beverages at the Schleswig-Holstein plant had to be curtailed. In addition, the prices for milk powder and butter have come under pressure, so that overall a decline in sales is expected for the second quarter of the year, managing director Bernd Gewecke said.

The managing directors of the Uelzena Group, supplemented by representatives from production, the human resources department and quality management, regularly analyse the situation and the outlook so that they can be adjusted if necessary.

“This way, we will continue to master the crisis with prudence in the coming weeks,” said CEO Jörn Dwehus.

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