DMK, the German dairy significant, is to close a domestic center and lower capability at 3 others amidst decreasing milk production volumes.
The co-op’s website in Dargun in north-eastern Germany is to be shuttered, while centers in Edewecht, Hohenwestedt and Everswinkel are to be reduced.
Some 150 staff members will be affected by the procedures, which are because of be executed by spring 2025.
DMK, Germany’s biggest dairy cooperative, stated it had no option however to make the modifications. It stated it primarily produces “basic items” at the impacted websites instead of greater worth lines. That cosmetics of items, integrated with a predicted decline in milk volumes, has actually resulted in the “modification strategies”.
In a declaration, DMK stated it is “responding to regionally altering basic material volumes and is likewise taking elements of value-adding item variety advancement into account in this preparation”.
It included: “The choice was preceded by a restored, substantial evaluation of the prepared procedures by ways of an independent skilled viewpoint on behalf of the staff member agents. This, nevertheless, did not permit any other conclusions to be drawn relating to the sustainable and financial extension of the locations in concern.”
DMK stated it is intending to optimise its network of production centers.
“These capabilities are identified by the interaction of 3 elements: the volume of milk per area along with need and capability at plant level. Depending upon these elements, the plant structure and item portfolio should be continuously optimised to accomplish the greatest possible worth for the processed raw milk. This likewise consists of enhancing items with greater included worth and minimizing those with lower returns,” it stated.
The co-op, which has around 7,000 staff members, stated it will participate in talks with the impacted staff members to discuss their alternatives.
“The DMK Group therefore has a strong interest in maintaining excellent staff members and releasing them in other functions,” it stated.
Simply Food has actually asked the trade union NGG, which represents employees at the websites, for its response to DMK’s statement.
“German dairy group DMK to shock production” was initially developed and released by Simply Food, a GlobalData owned brand name.
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