Ammerland reports good 2019 but predicts slow normalisation

Ammerland dairy in Germany has had successful development in recent years. Last year, sales increased by around €82 million or 8.9%, to €998.6 million. Equity rose by a total of €7.5 million to €136.4 million. Annual profit was €6 million and the balance sheet profit at €3.6 million remained almost constant.

The amount of milk processed rose by almost the same amount, increasing by 8.8% to 1,965.7 million kg. The increased amounts of raw material in 2019 is due both to the addition of new members and to increases from previous milk suppliers.

In the past financial year, Ammerland dairy used around 75.5% (2018: 72.9%) of raw milk for the production of cheese. The total cheese production was 164,496 tons (up by 13.1%).

Production was also expanded in the other product categories. The dairy produced 63,413 tons of powder (+18.3%), 22,592 tons of butter (+ 7.9%) and 160,320 tons of fresh products (+22.5%).

Like the entire industry, Ammerland dairy and its milk producers are feeling the economic effects of the coronavirus crisis. Due to the temporary curfews, important sales channels (eg, catering and out-of-home consumption) in Germany and abroad have broken down or almost come to a standstill.

From its perspective, the current trend towards gradual loosening of restrictions in Europe will initially only lead to a very slow increase in demand. A normalisation of the situation is not foreseeable due to the unpredictable consequences of the crisis.

The Covid-19 situation is currently putting great pressure on the development of the milk price, since a seasonal high milk supply meets a shrunk or completely lost demand as a result of the restrictions in public life. Ammerland is therefore campaigning for a voluntary reduction in the amount of milk for a fee, financed by the EU milk package.

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