Dairy company Emmi and the Aargauer Milchverband are to set up a joint company aimed at strengthening their international competitiveness.
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The new company Molkerei Mittelland AG, based in Suhr in the canton of Aargau, will be 60% owned by Emmi and 40% by the Aargauer Milchverband. Emmi will integrate its Lucerne production facility and the AMV its Aargauer Zentralmolkerei into the new company. The aims of the new firm will be to ensure efficient production, the exploitation of synergies in logistics and structural optimization in the interests of the Swiss dairy industry, Emmi said.
As market deregulation continues, the Swiss dairy industry must prepare itself for the future by focusing on further increasing efficiency in order to improve international competitiveness. With the newly created Molkerei Mittelland AG, Emmi and the Aargauer Milchverband have taken a major step towards strengthening their position in the international arena and have significantly improved the structure of the Swiss dairy industry, ensuring compatibility with European structures and thus providing a sustainable boost to the agriculture sector.
Both parties have agreed not to disclose the financial details of the transaction. Subject to the approval of the Federal Competition Commission (WEKO), the company will concentrate on butter, cream, milk and juices, as well as services such as logistics and assignments from third parties.
Molkerei Mittelland AG will in future enable product ranges and logistical services to be optimized on a step-by-step basis and improve the two companies’ position as a strong joint partner to their customers. AZM’s milk suppliers will be able to continue providing their milk to the new company at the current conditions.
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By GlobalData“As international competition intensifies and borders continue to be opened up, we have to be fit to face the future. The new company provides us with a good basis for improving production efficiency and thus putting ourselves on an equal footing with the rest of Europe,” said Walter Huber, CEO of the Emmi Group. For Pius Steinmann, chairman of the Aargauer Milchverband, this decision is “an important and appropriate decision aimed at improving the overall structure in the interests of the Swiss dairy industry as a whole”.
The Suhr production facility, with its good transport links and modern infrastructure, will be expanded following the creation of Molkerei Mittelland, while Emmi’s Lucerne facility (Emmi Butterzentrale AG) will be gradually relocated to Suhr over the next three years. Staff at the Lucerne production facility will be integrated in existing Emmi Group locations wherever possible.
The strategic aim of the Emmi Group is to ensure independence and economic success in a deregulated Europe. With its commitment to Switzerland as a production location and to improving efficiency, Emmi has created a valuable basis for the sustainable and competitive development of the company.
