Germany dairy cooperative DMK is in talks with local baby food maker Hipp about the “future ownership” of DMK’s Humana infant formula production facility at Herford.

Local media has reported that DMK is selling the central-Germany facility to Hipp.

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DMK told just-food over the weekend: “We currently find ourselves with Hipp in negotiations about the future ownership at Herford.” However, DMK said it would not comment in detail on “ongoing negotiations”.

DMK said in December 2013 it would invest in increasing the production capacity of its Humana baby food business but the division would see sales and marketing jobs head to the company’s head office.

Last week, DMK announced “a generational change” in its leadership team following the decisions of CEO Dr Josef Schwaiger and chairman Otto Lattwesen to step down.

The management changes came just days after DMK said it would push ahead with a major cost-cutting programme to free up EUR60m (US$67.8m) by the end of the year in response “severe challenges” faced by the dairy industry.

That followed DMK’s merger with DOC Kaas, the Netherlands’ second-largest cheese manufacturer, which came into force on 1 April.