FDBusiness.com

Royal FrieslandCampina and DMK Group have signed a contract manufacturing agreement for mozzarella and yellow cheese production. The agreement will become effective in 2019. FrieslandCampina will supply the milk of its member dairy farmers to DMK. DMK will provide the production facilities and expertise at Hoogeveen (Netherlands) and Georgsmarienhütte (Germany). For this purpose, DMK will further modernise the Georgsmarienhütte location.

The collaboration is a real win-win situation for both dairy companies.

Ingo Müller, CEO of DMK Group, comments: “Every year, we process around 8 billion kilos of milk. The collaboration with FrieslandCampina is part of our raw milk plan. In future, our raw milk will come from several sources. First and foremost, we process our members’ milk and market our products. Secondly, we process milk within the scope of plant contract manufacturing agreements such as the agreement we have concluded with RFC for Hoogeveen and Georgsmarienhütte. In this way, we will be in a position to utilise our plant structure optimally.”

Hans Meeuwis, President of FrieslandCampina Dairy Essentials, says: “We have a strong portfolio in cheese and want to grow further in cheese types like mozzarella. The collaboration with DMK fits well with our strategy to further expand our process capacity through selective partnerships, next to own network investments. The co-manufacturing agreement will allow us to expand our portfolio in mozzarella and other cheese types, drive value with our members milk and service our customers.”

No further information on the specifics of the contract will be published.