FDBusiness.com

DMK Group and Arla Foods Sign Mozzarella Contract Manufacturing Agreement

 Breaking News
  • Lactalis Expands in Infant Nutrition With €740 Million Acquisition Lactalis Group, the international dairy group based in Laval, France, is acquiring the Nutritional business of Aspen Pharmacare for €739.8 million (R12.9 billion). The business being acquired supplies a wide range of infant nutritional and growing-up milk products across both the premium and value segments. It manufactures and markets well established quality brands, including S-26, [...]...
  • Thatchers Cider to Invest £14 Million in New Cider Mill Thatchers Cider, the family owned English cider producer, is to invest £14 million in a new cider mill at its Myrtle Farm site in Somerset to meet growing demand for its products. The company has applied for planning permission and, if granted, the new mill would come on stream in 2019. “This investment is about our [...]...
  • Coca-Cola Great Britain Teams Up With Premier League Premier League and Coca-Cola Great Britain have announced a new three-and-a-half-year partnership, starting in January 2019. It is the first sponsorship Coca-Cola Great Britain will activate across multiple brands within its portfolio, showcasing a range of drinks including sparkling soft drinks, water and fruit-based drinks, with low and no-sugar options. The partnership will see Coca-Cola work [...]...
  • Barry Callebaut Completes $30 Million Capacity Expansion in North America Barry Callebaut, the world’s leading manufacturer of high-quality chocolate and cocoa products, has announced the completion of several expansion investments in three of its North American facilities located in St Hyacinthe, Quebec; Chatham, Ontario; and St Albans, Vermont. The investments amount to close to US$30 million and are in line with previously announced plans. Recent investments [...]...
  • Strong First Half From Hilton Food Group Hilton Food Group, the UK-based leading specialist international food packing business, has reported a 25.0% increase in turnover to £863.6 million and by 24.5% on a constant currency basis for the 28 weeks to 15 July 2018. Volumes increased by 12.7% reflecting growth in the UK, Ireland and Australia. Operating profit for the first half [...]...

DMK Group and Arla Foods Sign Mozzarella Contract Manufacturing Agreement

DMK Group and Arla Foods Sign Mozzarella Contract Manufacturing Agreement
December 21
09:05 2017

Arla Foods, the international dairy co-operative, and DMK Group, Germany´s largest dairy co-operative, have signed a third-party manufacturing contract that will see DMK produce 35,000 tons of mozzarella cheese for Arla per year at its Nordhackstedt site in northern Germany.

As part of the agreement, DMK will rebuild its Nordhackstedt site to become fully focused on mozzarella production. This will increase the supply of whey for the two companies’ joint venture ArNoCo, which produces whey protein and lactose at a neighbouring site and at Arla’s site Denmark Protein in western Denmark.

Peder Tuborgh, chief executive of Arla Foods.

DMK’s cheese site in Nordhackstedt has a current capacity of approximately 70,000 tons, of which half is dedicated to mozzarella cheese. DMK will invest €15 million to focus the entire capacity on mozzarella cheese by late 2018, after which it will initiate third party manufacturing for Arla.

Arla will supply 300-350 million kilos of milk for the production annually and will pay DMK to produce 35,000 tons of mozzarella cheese each year.

The two dairy companies collectively own the joint venture ArNoCo, which was established in 2011 at the Nordhackstedt site and since 2015 a state-of-the-art whey processing facility has been up and running.

As the mozzarella production at Nordhackstedt will increase, the site’s supply of whey for ArNoCo will go up as well.

“We are very pleased to sign this important manufacturing agreement that secures access to profitable raw material for our joint venture production at ArNoCo. It will also expand Arla’s strategic mozzarella business and our own production of whey protein ingredients as we continue to add even more value to our farmer-owners’ milk,” says Peder Tuborgh, chief executive of Arla Foods.

Ingo Müller, chief executive of DMK Group.

Ingo Müller, chief executive of DMK Group, comments: “We are re-shaping our footprint for our German plants to produce in a more efficient way. Next to this, we are optimizing our portfolio towards more value-creating products. This contract manufacturing agreement will enable us, to make a next step forward and to weatherproof DMK for the future.”

The new collaboration comes as a result of an increased global demand for mozzarella cheese from both consumers and the foodservice industry. Arla Foods expects the European mozzarella cheese market to increase from 600,000 tonnes in 2017 to 720,000 tonnes by 2022.

“Arla is one of the world’s leading producers of mozzarella cheese, and with this agreement we aim to build on that position to continue to provide consumers and foodservice customers with quality mozzarella in Europe, Asia, USA and the Middle East,” says Peder Tuborgh.

Further terms and conditions of the agreement are not disclosed.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
  • September 30, 2018Trade Fair for Butchers, Caterers and Meat Industry (Meat Expo)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements