In this interview, CEO Ingo Müller looks back at the key steps taken in 2024, offers insights into market developments, highlights the transformation achievements at DMK, and provides a glimpse into the years ahead.
Mr Müller, let's start with a review of 2024. How would you summarise the year?
Ingo Müller: 2024 was a strong year: we managed to pick up where we left off before the exceptional circumstances of 2023. Our milk price was on par with the competition, and our equity ratio and net income exceeded expectations. We secured long-term refinancing for five years – a strong signal of our stability. This successful close of the financial year gives us the momentum we need to continue securing our future. That said, 2024 wasn't a walk in the park. We had to address still ongoing challenges and set new strategic directions while continuing our transformation with commitment. As expected, 2024 was thus a busy year – – and we tackled it together: with a strong team willing to go the extra mile and bring daily motivation and passion. The fact that we emerged stronger from 2024 is a clear team achievement!
How has the market environment in which DMK operates developed over the past year?
The economic environment was and remains tense. Inflation, the energy crisis, geopolitical conflicts, and an overall unstable consumer market all influenced our operating environment and continue to present challenges. In addition, milk production in Germany and Northern Europe is declining – as a result of ongoing structural change in agriculture. The outbreak of bluetongue disease last summer then further exacerbated the drop in milk volumes, in some cases. On the other hand, dairy markets proved more robust than many expected as the year progressed.
How is DMK dealing with these developments?
The changes in the market environment challenge us to react flexibly and repeatedly review our plans and, if necessary, to adjust them – without losing sight of our strategic vision for 2030. And that is exactly what we did very well in 2024: with our measures to optimise our portfolio, to intelligently exploit the market and to increase efficiency in production, we have proven that we are able to survive in a difficult market environment.
What were the key strategic decisions you made?
Ingo Müller: We have redefined our growth areas, consistently focused on business areas that offer long-term potential, and optimised our product ranges in a targeted manner. For example, we're currently building a new cheese ageing warehouse in the Netherlands to further expand this value-added category. Our food service segment for professionals is another important growth area – we've made key decisions here too, strengthening our no. 1 position in the DACH region. The same applies to our MILRAM brand business, where we lead the market in cheese and flavoured quark, and hold a strong position in buttermilk drinks. We also very successfully support our retail partners with private-label dairy products, making us a market leader in this segment too. In addition, we've nearly completed the turnaround in our baby food division. So, overall, we have made a lot of progress. The 2024 results clearly show we're on the right path with our 2030 strategy and capable of preparing the company for a secure future – together.
What influence does consumer behaviour have on the further development of the DMK Group?
Ingo Müller: Consumer behaviour is changing – price awareness is playing an increasingly important role in purchasing decisions. This poses a new challenge for premium products. However, it also gives us the opportunity to stand out with innovative solutions. At the same time, it's crucial that we remain agile in responding to evolving dietary habits – and, again, this comes back to adaptability. A current example of this is our increase in the production of cottage cheese. Demand for this high-protein dairy product has increased enormously. We have responded to this and are now producing 30% more of our MILRAM cottage cheese at our Hohenwestedt facility than in 2023.
And looking ahead – what's next? What specific plans are in place for the coming years?
Ingo Müller: We want to consistently pursue our path – focusing on growth, efficiency, sustainability, and a value-adding product portfolio. At the same time, we want to focus specifically on high-margin segments. In low-margin export markets, we plan to scale back our activities while further expanding our position in the core regions. In the Netherlands, in particular, we're implementing strategic changes and introducing new organisational structures in order to be able react more swiftly to market shifts.
When you talk about efficiency, where do you see concrete potential?
We've already made great strides: with our motivated and diverse team, we work highly efficiently within our matrix structure and maintain constant cost awareness. By the end of 2026, we aim to further streamline processes, tap into automation potential, and invest specifically in modern, resource-efficient production facilities. Another key lies in leveraging intelligent data analytics – these help us to reduce downtimes and identify market trends early. In order for change to succeed, we consciously rely on the qualifications of our employees. That is why we are expanding our training and further education offers in a targeted manner – with a focus on digital skills, process optimisation, and sustainable management.
You are also focusing on sustainability. What role does sustainability play in the future of the DMK Group?
Ingo Müller: For us, sustainability is more than an environmental necessity – it's a strategic part of our corporate direction. We are convinced that ecological action and economic success are not mutually exclusive but can complement each other. That's why we rely on solutions that protect the climate and the environment – and bring concrete benefits to both our customers and farmers. In the past year, we have thus accelerated our sustainability efforts – for instance, by deciding to convert most of our product range to milk from animal welfare Tier 3 starting in 2025, by switching our milk collection fleet to climate-friendly Bio-LNG, and through our ongoing research project "Net Zero Farm". Through our sustainability strategy, we have established an excellent reputation in the industry as a valuable and responsible partner.
Finally, looking a little further ahead – Where do you see DMK in 2030?
Ingo Müller: After approval of the merger by our agricultural committees, the next step is an antitrust review by the competent supervisory authorities. If we receive the green light here as well, the merger with Arla will greatly accelerate our DMK 2030 Vision – achieving remaining milestones in one decisive step. The merger will therefore result in us making a major stride forward on our common path to actively shaping the dairy industry of the future. We'll no longer be competitors but a joint cooperative dairy with combined strength. Together, we'll be a powerful home for our farmers and a leading player in the dairy sector – resilient, highly capable, and with combined expertise and double the innovative power. Of course, we will also accompany all employees on this path in a very transparent manner. And we will always do this while maintaining stability and leveraging the opportunities of this new joint venture. Our product portfolio will continue to be based on milk, supplemented by innovative products that are geared towards changing consumer needs. Our mission: to ensure the highest added value for our farmers' milk and, at the same time, create opportunities for growth. I am looking forward to this journey and am convinced that something good will come of it.
