DMK sees "dairy market crisis" hit results
DMK said number of farms supplying milk to business fell 6%
DMK, the Germany-based dairy group, booked lower sales and profits in 2015, with the co-operative pointing to "plummeting" global milk prices.
The company posted turnover of EUR4.7bn (US$5.18bn), down 11% on 2014. Germany's largest dairy processor generated profits of EUR13m in 2015, versus EUR42.3m a year earlier. DMK insisted the fall in profits was done in consciously, as it paid out EUR30m to its farmer-members during the year.
Nevertheless, DMK revealed the number of farms that delivered milk to the processor fell 6% to 8,350 in 2015.
In August, DMK kicked off what it called an "extensive" cost-cutting programme in order, it said, "to support the liquidity of the milk suppliers". It hopes to save EUR50m by the end of the year.
DMK's strategy is based on four businesses - dairy products, cheese, ingredients and subsidiaries including baby food and ice cream. It pointed to a "stable" performance from its brands in 2015.
In the United States of America, some 30% of baby foods are made organically certified, whereas organic infant formulae account for just 3% of overall formula sales....
The organic baby/toddler food sector in the USA is growing by 10-12% per annum. As a result, many new products are being launched into this sector. Organic products now account for approaching 50% of ...
- Focus: Nestle CEO plan to balance sales, earnings
- Does Kraft Heinz want to swallow Unilever whole?
- Will Kellogg's DSD exit help it grow in US snacks?
- Comment: Meal kits in US - don't believe the hype
- Is Mondelez's margin target hurting sales?
- Nestle plans restructuring as 2016 profit misses
- Danone eyes efficiency, agility with new structure
- Kraft Heinz pursuing Unilever in takeover move
- Kraft Heinz returns to organic growth, ups margins
- Danone sales dampened by Europe, China