'DOC Kaas is rightly in the spotlight again'

DOC Kaas has now merged with the German DMK for more than five years. Guus Mensink, chairman of the cooperative since May last year, believed in the benefits of the merger. He is therefore not surprised that the number of members of the cooperative is growing again. "At DOC Kaas we are practical and strive for the highest possible milk price. That is the income of our members. And yes, if vegan dairy contributes to this, then you can't object, can you?"

You have been chairman for almost a year now. What exactly is your leadership style?
"Pooh, that's quite a difficult question. I don't like to talk about myself in that sense, but I dare to say that I am easily approachable. Both for our members and for DMK, of which the cooperative has owned 10% since the merger. the shares of ownership. Because I had been vice-chairman for a number of years, I knew how things work. Also at DMK. And many members already knew me. That is an advantage. When I was approached to become chairman, I had to The chairmanship also entails a seat on the Supervisory Board of DMK GmbH and is therefore quite an attack on the agenda, but you get a lot in return. wonderful challenge."

DOC Kaas is relatively not often in the publicity. How would you describe the identity within the cooperative?
"As open, honest and transparent with short lines of communication. These are core values ​​within our cooperative and we strive for them. Our goal is optimal valorization and therefore a competitive and stable milk price. And purchase certainty is a matter of course. Within DMK, a lot of responsibility is felt to milk as well as possible. We now have about 650 members and the cooperative is quite a close-knit club. So yes, when a number of members decided to leave, it hurt."

Then it must have been good that dozens of new members signed up last year, including a large influx from FrieslandCampina?
"Let me put it this way: we are rightly in the spotlight again. For example, our milk price is competitive. At the moment I am satisfied with that, although we always strive for better. This is also badly needed to be able to absorb the rapidly rising costs. The one-to-one ratio between the fat and protein prices is also appreciated, I notice.Furthermore, our members' bonus of €0,58 per 100 kilos of milk - which can be gradually built up over a period of ten years - is manageable to join. Investment of capital prior to milk delivery to DOC Kaas is not necessary. In return there is an interest payment of 4%, which is not wrong in these times.The fact that dairy farmers knock on our door to become a member is of course a great appreciation and confirmation that we are back on the map again. Incidentally, the recruitment came from various dairies. Although unlike other dairies, we do not recruit very actively, new members are cordial come. Our goal is to grow."  

DOC members were able to count on a considerable supplementary payment last year. That will probably help dairy farmers in the picture to come?
"A high supplementary payment is not a goal in itself for us. DMK has a profit target of €25 million for being able to make investments. If the profit goes beyond that, it flows back to our members. That is the beauty of a cooperative compared to a private dairy company. Preferably, the profit flows back via the monthly advance price. However, last autumn the dairy market rose so quickly that there was financial scope to make a supplementary payment. We chose to pay €0,43 per 100 kilos in December to meet the members of the cooperative in their liquidity needs.In that respect we are a practical cooperative.In January an additional amount of €0,54 per 100 kilos was added as a remainder, with which the total supplementary payment over 2021 will be €0,97 per 100 kilos of milk."

How would you describe DMK, as German reliability…
"Yes, but DMK is more than just 'gründlichkeit' – as the Germans say it – it is also an innovative and progressive company. In order to participate in the growth market for baby food, the DMK Group has invested in its own baby food factory in Strückhausen And it has acquired the Alete and Milasan brands. The production capacity of the factory in Nordhackstedt has been doubled to 70.000 tons of mozzarella, which we produce partly as contract work for Arla Foods. And with the acquisition of DVN in Hoogeveen, DMK is stimulating the expansion of the meadows. activities in European and Asian growth markets. The whey is processed into high-quality ingredients for sports nutrition, among other things. DMK focuses mainly on the European market. Exports to Asia, for example, do occur, but that is not necessarily the main part. DMK also has two cheese dairies for specialty cheeses in Russia, but they only process Russian milk. DMK also produces ingredients and animal feed. subsidiary Norlac GmbH produces, among other things, Normi ​​calf milk replacer products. This makes DMK the only cooperative party that offers calf milk replacer powder."

Vegan dairy is on the rise, and DMK is also doing a great job with it. Is this not a sensitive point for your members?
"For me personally, this is not a sensitive point and neither is it for many of our members. During our district meeting, one clarifying question was asked about this, many members see the added value. Vegan dairy is an emerging market in Northwestern Europe. does not compete with regular dairy, because this appeals to a different target group. We try to respond to this by also offering a vegan variant of some products. This ultimately benefits the operating result and our members then benefit from this through a higher milk price. I don't think you can object, but I would like to emphasize that dairy remains the main focus, now and in the future. We are and will remain a dairy cooperative."

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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