DMK, the German dairy giant, will close a domestic factory and reduce capacity at three others due to declining milk production volumes.
The cooperative’s location in Dargun in northeastern Germany will be closed, while its facilities in Edewecht, Hohenwestedt and Everswinkel will be phased out.
About 150 employees will be affected by the measures, which are to be implemented in spring 2025.
DMK, Germany’s largest dairy cooperative, says it has no choice but to implement the changes. The company says it mainly produces “standard products” at the affected locations, as opposed to higher-end lines. This composition of products, combined with an expected decline in milk volumes, has led to the ‘adjustment plans’.
In a statement, DMK said it is “responding to regionally changing raw material volumes and also takes into account aspects of value-added product range development in this planning.”
It added: “The decision was preceded by a renewed, comprehensive examination of the planned measures through an independent expert opinion on behalf of the employee representatives. However, this did not allow any other conclusions to be drawn about the sustainable and economic continuation of the areas in question.”
DMK says it wants to optimize its network of production facilities.
“These capacities are determined by the interplay of three factors: the milk volume per region and the demand and capacity at factory level. Depending on these factors, the factory structure and product portfolio must be continuously optimized to achieve the highest possible value for the processed raw milk. This also includes strengthening products with higher added value and reducing products with lower returns,” the report said.
The cooperative, which has about 7,000 employees, said it will engage with affected workers to discuss their options.
“The DMK Group therefore has a great interest in retaining good employees and deploying them in other positions,” the company said.
Just eat has asked the NGG union, which represents employees at the locations, for its response to DMK’s announcement.
“German dairy group DMK to shake up manufacturing” was originally created and published by Just Food, a brand owned by GlobalData.
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