Ammerland reports improved sales in Germany
Image: Ammerland
Ammerland dairy in Germany continued on its growth path in 2021. After the co-operative had generated sales of over €1 billion ($1 billion) for the first time in 2020, this increased further by 10.5% to €1.12 billion ($1.2 billion) in 2021.
Its processed milk volume also increased again in 2021. Overall, raw material intake increased by 4.3% year-on-year to 2.1 billion kg. Most of the raw milk (around 75%) was used to make cheese, which increased to 172,882 tons (plus 5.8%).
The production of powder amounted to 81,444 tons and thus also recorded an increase compared to the previous year (11.7%).
In other product categories, production volumes were reduced in response to market conditions. The dairy produced 166,390 tons of fresh products (down 3.7%) and 21,694 tons of butter (down 8.9%).
In order to secure the raw material basis in the coming years, Ammerland been adding new milk producers. Its average milk price rose by 12.1% to €0.3738/kg in 2021.
As in previous years, Ammerland has a solid balance sheet. Its total increased by €38.6 million or 12.9% to €338.9 million in the 2021 financial year and equity by a total of €7.9 million to €151.2 million (equity ratio: 44.6%). Net income for the year of €6.4 million and the balance sheet profit of €3.8 million are also slightly above the values of the previous year.
For the current year, Ammerland dairy expects the prices paid to its regional milk suppliers to continue to rise. The mark of €0.60/kg raw milk has already been exceeded. This development is necessary, because costs for milk producers have risen noticeably in all areas.
Milk deliveries to Ammerland are growing moderately. Due to the increased product prices for cheese, butter and drinking milk, a significant increase in sales is expected for the year as a whole. Thus, despite rising energy and raw material prices and the currently difficult global situation, Ammerland continues to expect positive business development in the current year, the company says.