FDBusiness.com

DMK Group and Arla Foods Sign Mozzarella Contract Manufacturing Agreement

 Breaking News
  • UK Bottled Water Sales Top 4 Billion Litres For First Time Last year’s hot summer boosted UK water drinks consumption by more than 7% to 4,267 million litres, according to a new report from food and drink experts Zenith Global. This was worth an estimated £3.330 billion at retail prices. Sales of plain bottled water in retail packs increased by 7.9% to 3.4 billion litres, whilst [...]...
  • Morrisons Signs Up to Arla UK 360 Farm Standards Programme Arla Foods’s new farming standards programme Arla UK 360 continues to gain traction as Morrisons becomes the first retailer to commit to supporting the standards across its entire Arla milk supply. The move means approximately 200 Arla farmer owners will be directly supported by Morrisons to deliver across the eight farm business areas identified in [...]...
  • Vitafoods Europe 2019 – Guiding the Industry to a More Sustainable Future As environmental awareness reaches new heights and the world’s population continues to rise, the issue of providing sustainable foods which also offer a high nutritional value is set to grow, in both importance and complexity, over the next decade. It is with these considerations in mind that Vitafoods Europe 2019 has developed its agenda. The [...]...
  • Nordzucker to Invest €100 Million in Swedish Sugar Production Nordzucker Group will concentrate its sugar production in Sweden at its factory in Örtofta and as part of this process the refinery at Arlöv will be closed. Around €100 million will be invested in the strategy. The project is expected to be completed in autumn 2021. Based at Braunschweig in Germany, Nordzucker Group is one [...]...
  • FrieslandCampina Plans to Build a Sustainable Dairy Processing Plant International dairy co-operative Royal FrieslandCampina is exploring options to build a sustainable and innovative dairy processing plant in the Netherlands. The plant is intended for the processing of member milk into fresh dairy products, ingredients used for the production of early life and adult nutrition, and for cheese manufacturing. It would be built according to [...]...

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

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements