DMK, Germany’s largest dairy processor, plans to merge with Dutch cheese maker DOC Kaas.
Josef Schwaiger, DMK’s chief executive, said the deal was another way for the company to expand production to supply to markets outside Europe. EU quotas on dairy production are set to end in 2015 and there has been a wave of consolidation in the sector in recent years. Earlier this week, DMK urged Germany’s dairy producers to consolidate the country’s sector to ensure the country is competitive in export markets.
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Schwaiger said: “Against the background of consolidation in the European dairy industry, it is more important than ever before to combine forces across national borders in order to open up key non-European markets.”
The two dairy co-operatives process a combined 7.5bn kilograms of milk. The deal remains subject to the approval of both companies farmer-members and competition authorities.
DOC Kaas chief executive J. L. Oosterveld said: “We have adopted the ambitious aim of further strengthening our position. Our co-operative members can still count on a competitive milk price, continuity and growth in the future.”
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