DMK GROUP adopts leaner structure

Bremen, 28 June 2017. DMK Deutsches Milchkontor GmbH (the DMK GROUP) is planning to streamline its production capacity with a new site concept. This is a reaction to dairy farmers' plans to leave the cooperative, which will lead to a reduced volume of milk.
In response to a fall in the volume of milk supplied, the DMK GROUP plans to discontinue operations at its factories in Rimbeck and Bad Bibra: the Group is set to lose up to 1.7 billion kilos of milk in the next two years because farmers are leaving the cooperative. Slicing and packaging will be discontinued at the Nordhackstedt site in Schleswig-Holstein for the same reason. The company says that the closures will not take effect before the first quarter of 2018, and not before the middle of that year in Nordhackstedt.

The factory in Bergen on the island of Rügen is also likely to be affected by the measures, as the production costs of the "Rügener Badejunge", a popular east German soft cheese, are too high. The most recent annual deficit for the DMK GROUP came to around two million euros. On the one hand, the results of a comprehensive analysis showed that even high investments in modernising the production facility would not lead to competitive production costs. On the other, significant price increases to cover production costs are not feasible in the market. The DMK GROUP and Rotkäppchen Peter Jülich GmbH & Co. KG will go their separate ways no later than the second half of 2019.

The final decision on the plans' implementation requires the consent of the Supervisory Board. DMK has assured the 270 employees at these sites of extensive support in the imminent talks. The rights of participation and co-determination enjoyed by the employees' representatives will be preserved. Operations at the 20-plus remaining DMK GROUP sites in Germany and the Netherlands, with around 7,000 employees, will remain unaffected by the measures.