GERMANY: DMK urges industry to use M&A to build export strength
Further consolidation is needed in Germany's dairy sector to ensure the country can compete in the world's fast-growing markets for dairy products, according to DMK, the nation's largest processor.
DMK was formed last year through the merger of German co-operatives Nordmilch and Humana Milchindustrie and accounts for 20-25% of Germany's milk production.
Speaking to just-food at the Anuga trade exhibition in Cologne, a spokesperson for DMK said Germany's dairy industry remained fragmented compared to markets like Denmark and the Netherlands.
Aside from the creation of DMK, Germany's dairy sector has seen a number of M&A moves in recent months, led by Arla, which has moved to buy Hansa Milch and Allgäuland Käsereien.
More consolidation was vital, the DMK spokesperson said, to enable Germany's dairy industry to compete effectively in fast-growing markets for dairy in regions like Asia.
She said DMK should not be the only dairy processor in Germany driving the consolidation in the sector. "We hope the fact that other European dairies are trying to get into the German market wakes up some of the other local dairies to take part in the concentration of the market."
The merger of Nordmilch and Humana Milchindustrie has created a company with the ability and resources to expand its overseas operations and develop new products for consumers in emerging markets, the spokesperson explained. "Size allows you to develop your business and to improve your innovation," she added.
Dutch dairy giant FrieslandCampina has taken a majority stake in Philippines firm Alaska Milk Corp....
Dairy giant Arla Foods said today (23 February) that 2012 profits would be "on par" with last year, when its consumer brands and ingredients divisions boosted earnings....
German dairy giant DMK is to expand its ingredients business through the acquisition of a further stake in DP Supply....
- BRICs: The thinking behind Mondelez's Vietnam deal
- Interview part 1: BRF CFO Augusto Ribeiro
- Prospects for protein: Snacks growth to continue
- Comment: Why Gardein is Pinnacle's ideal fodder
- Deal or no deal: Should Danone buy Mead Johnson?
- 2 Sisters Food Group posts higher annual losses
- Kellogg trumps Abraaj bid for Bisco Misr
- Bird flu leads Dutch to stop poultry distribution
- Live blog: Food Matters Live
- Arla eyes infant formula firms with lactose plant
- Early Signals: future scenarios that will drive consumption and product innovation over the next five years
- Energy Bars Market in Canada: Market Profile to 2017
- The Snackification of Breakfast
- Dairy Product Production in China
- PepsiCo, Inc. : Consumer Packaged Goods - Company Profile, SWOT & Financial Report