According to DMK Group, 2023 was a year of extremes. Market distortions combined with negative one-off effects led to an unsatisfactory annual result. As a result, the average milk price for the year was too low.
According to DMK, the reasons for the lower-than-expected result in 2023 are diverse: extreme market distortions on the one hand led to enormous devaluations of stocks, especially for cheese. In addition, less volume was called up in the white and yellow lines due to restrained demand, which then had to be channelled into poorer quality products such as powder. In addition, the company had to cope with higher energy costs due to necessary long-term contracts.
DMK paid an annual average of 41.1c to its farmers. Last year, turnover totalled €5.5 billion and was on a par with the previous year.
Products with higher added value are now to be strengthened and expanded at DMK, while those with lower utilisation are to be reduced. “In order to consistently pursue the strategic path we have chosen, we sometimes have to make decisions that are unpopular at first glance. This includes the decision to reduce capacity at four DMK sites by the beginning of 2025. As painful as this decision is, it is important and right in order to position us for the future and it strengthens all other sites,” says CEO Ingo Müller.
2023 figures
The DMK Group’s total assets will amount to €1.76bn in 2023 (previous year: €1.98bn). DMK Group’s fixed assets are reported at €702.8m (previous year: €729m). Property, plant and equipment totalled €651.4m (previous year: €672.6m), while depreciation and amortisation amounted to €107.4m. Equity totalled €611.2mn (previous year: €620m). Departing members accounted for €9.8m in business assets (previous year: €6.6m). Liabilities to banks were reduced from € 476.4m to € 276m (2023). DMK employed 5,864 people in 2023 (2022: 5,811). 5.5bn kg of milk from 4,536 producers was processed at 20 plants, with 3,872 farms directly allocated to DMK.
