Nordmilch profits from 2009 slimming programme

More attention to profitable product group dairy spreads and traditional German regional cheeses gave Nordmilch a golden 2009 with a 21 per cent increase in earnings abroad from the cheese division. Nordmilch, Germany’s largest dairy in terms of milk processed, had spent the previous year on a slimming cure – and it showed in the results for 2009.

Milk processed was down on the year by 100 million kg to around 4000 million kg in 2009 while actual turnover slumped by 25 per cent to EUR1.86 billion. But obviously the right products had been promoted and in the end profit for the year edged over EUR29m, no less than 45 per cent above the bottom-line in the previous year.

Of course, there was a lot more spending in new product lines and other expansion projects in 2008. But last year, as Nordmilch chairman Dr Josef Schwaiger (pictured) emphasises, this production structure adjustment had paid off, as had the products chosen for more marketing emphasis. He reports “Strong growth in the profitable segment cheese.”

Here, a production of 182,000 tonnes including the new Milram “Sylter” slicing cheese earned EUR630.9m which was six per cent up on the year with a 21 per cent increase in export earnings. Fresh milk products yogurts, dairy drinks and desserts including innovations like the new breakfast spread Milram “Fruhlingsmousse” (Spring Mousse) involved the processing of 200,000 tonnes of milk last year and earned the dairy EUR223.5m.

During 2009 Nordmilch had gathered the specialist cheese making segments of the dairy cooperative Pommernmilch into its fold as well as bundling Nordmilch marketing activities along with those of the other top German dairy, Humana, into the jointly-owned Nord-Contor Milch. Chairman Dr Schwaiger added that there would be a definite decision about a much closer cooperation with Humana (over two billion kg milk per year and a turnover of EUR2.2bn) with a fuller fusion of operations probably in 2011.This would give a German concern a place in the world’s top 12 dairies for the first time.