DMK focuses on branded dairy for higher margins

Deutches Milchkontor (DMK) posted a higher profit in 2018 with lower turnover. In the future, one of the largest dairy processors in Germany will focus more on branded dairy.

DMK's turnover fell by €200 million to €5,6 billion, while bottom-line profit rose by €1 million to €30,6 million, according to preliminary figures released by the dairy this week. The final balance is drawn up in June.

DMK has in the past years a restructuring implemented and, according to Ingo Müller, the CEO of DMK, the first fruits are now being reaped.

More margin with branded dairy
One of DMK's spearheads is realizing a higher margin with the sale of 'quality products'. According to the CEO, bulk products are interchangeable and therefore susceptible to price competition. The group wants to distinguish itself more by focusing on branded dairy, with which it hopes to realize added value (i.e. higher margins).  

The CEO also says that the 'ice cream division' of the dairy group has written red figures in recent years, but it looks like the downward trend can be reversed.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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