4 September 2007 - In an attempt to grow profit and focus on exports, German dairy firm Nordmilch plans to sell some product groups, the company told the local financial media.
In an interview, Nordmilch CEO Josef Schwaiger said that the milk-based drinks, yoghurt and desserts segments were concerned. He added that the company wants to divest these operations by July 2008.
Instead, the firm will concentrate on its other divisions, including cheese, which represents about a third of Nordmilch's 2 billion euro annual sales. Cheese is more suitable for export to other countries, said Schwaiger.
Schwaiger also said that Nordmilch is 'surely the most interesting takeover candidate there is in the German market at the moment'. However, he added that he does not want his company to be acquired by a competitor.
Last month, FLEXNEWS reported that the German dairy sector, given its current market situation and record price levels, may be subject to consolidation.
A German dairy industry spokesperson said there could be a series of mergers and acquisitions in the next 12 to 15 months and even predicts that 3 to 5 companies will disappear from the market each year.
He went on to say that German dairy companies are suffering from large-scale competitors (often foreign), which have weakened their position in negotiations with trading partners and suppliers of raw materials.