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.
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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.
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