DMK CEO Dr Schwaiger says costs must be cut to remain competitive

DMK CEO Dr Schwaiger says costs must be cut to remain competitive

DMK plans to close its "outdated" ice cream production plants in Recke and Nuremberg in order to reduce production costs.

Production will be transferred to Waldfeucht-Haaren, Everswinkel and Prenzlau and these sites will benefit from investment in the "tens of millions". This investment will enable DMK to add new recipes to its portfolio and reach new customers, the group suggested.

DMK CEO Dr Josef Schwaiger said that the move was prompted by falling food prices in Germany where a "majority" of consumers are "not willing to pay a fair price for quality food".

He added: "As a cooperative, we have a responsibility to be economically successful in order to provide long-term job security for the employees and to be able to pay a competitive milk price... Therefore, we plan outdated plants to close in Nuremberg and Recke."

Recke will cease production at the end of this year, with 125 job losses. The Nuremberg site will stop production in 2017/18 and 200 people are employed at the site, the company revealed. The company is offering opportunities to continue working at other DMK-owned sites.

In a bid to improve its competitive position within the European dairy sector, DMK and DOC Kaas are looking at proposals to merge their operations. DOC Kaas members approved the proposal this week.