DMK Group responds to China's demand for high-quality dairy products
Milk, for thousands of years, has nourished infants, children and adults worldwide. For nearly as long, it has also been continuously evolving - from a humble yet fragile source of sustenance to a ubiquitous, indispensable ingredient. From ancient butter, cheese and yoghurt to modern ice cream, melted pizza topping, supplements and other health products, milk and its derivatives have permeated human lives with a purpose beyond basic nourishment.
Milk, for thousands of years, has nourished infants, children and adults worldwide. For nearly as long, it has also been continuously evolving - from a humble yet fragile source of sustenance to a ubiquitous, indispensable ingredient. From ancient butter, cheese and yoghurt to modern ice cream, melted pizza topping, supplements and other health products, milk and its derivatives have permeated human lives with a purpose beyond basic nourishment.
In Germany, which is among the world's top dairy producers and consumers, industry leader DMK Group believes that dairy products have not yet ceased changing forms and functions - thanks to technology, research and development (R&D).
"Integral to DMK's vision is elevating the quality and breadth of its products for global customers, whose growing appetite for all types of dairy products is fuelling the industry to produce more and better selections," says Michael Feller, managing director of marketing and sales, DMK Group. "Much like the humble milk, DMK Group will continue to adapt to changing trends and technologies."
As Germany's largest dairy company with an annual turnover of more than Euro5.3 billion (HK$46.67 billion), DMK Group delivers about 6.8 billion kilograms of milk yearly from 17 dairy plant locations across Germany. Another eight locations produce baby food, ice cream and health products.
DMK Group is also trusted by retail companies, food manufacturers and bulk consumers in about 100 other countries, under brands including Milram, Osterland, Oldenburger, Humana, Intact, Leben's, Biolabor, Hansal and Normi.
The group's extensive reach, however, begins in a local community of more than 7,400 employees and 8,900 dairy farmers and cooperative shareholders dedicated to their craft.
"By taking charge of the technology and know-how and having control over the complete quality chain from grass to glass, we are able to show our consumers that they are not only in our heart," Feller says. "They are also in our focus to develop sustainable branded precisions and strong relationships."
Embodying a modern, efficient cooperative, DMK's dairy farmers identify with the group and its strategic direction, while DMK's employees identify with the work of the farmers. The farms are located in the German regions of Schleswig-Holstein, North Rhine-Westphalia, Lower Saxony, Mecklenburg-Vorpommern, Saxony-Anhalt, Brandenburg and Hessen.
"As a cooperative, we have given guarantees to our farmers to process and sell all the milk they supply to us so they have no volume limitations and are free to increase their capacities to invest as entrepreneurs and shareholders of DMK Group," Feller says. "Through them, we are able to control the quality of the raw milk on the farm level, with quality programmes throughout the complete quality chain."
Grass-to-glass quality assurance
DMK Group guarantees end-to-end quality assurance from the farm to the chilled cabinet by careful selection and inspection of the raw materials, which are tested by its farmers every time they make a delivery. Its regularly inspected farms, innovative and rigorously controlled production methods and cutting-edge labs testify to DMK's stringent quality control.
"We take responsibility for the quality and safety of our products across the total value chain. This is an important reason for the popularity of our products and our international success," says Ingo Muller, managing director for ingredients, central quality management, and research and development at DMK Group. "We are not only committed to consumers and their quality expectations in this regard, but also to our customers in retailing and the food manufacturing industry."
DMK Group is also certified in accordance with the established food safety standards such as IFS, BRC and International Organization for Standardization. Its production processes are subject to the quality standards of Good Manufacturing Practice.
In addition to its strong, internationally well-known brands Humana, Milram and Oldenburger, DMK's ingredients business is one of the group's pillars of growth. The business areas of milk and whey powders, in particular, contribute to the positive development of sales outside Germany and to DMK's positioning as a reliable full-liner.
Together with its partners, DMK Ingredients makes more than 1.4 billion litres of milk and 3.6 billion litres of liquid whey into high-quality milk and whey products.
For this business unit, the pillars are milk powders and other white products as well as DMK subsidiaries Wheyco, DP Supply and Norlac - all of which complement each other in terms of portfolio and know-how.
"As a result, DMK Group is able to offer customers a broad product portfolio that fulfils German and international customers' requirements in everything - from standard products to tailor-made solutions," Muller says. "The quality proposition of 'Ingredients Made in Germany' has the best possible reputation worldwide and stands for sustainable milk production, top quality and food safety."
To further address the demand in Germany and internationally and ensure continued growth, the group has invested more than HK$4.4 billion in its German factories in the past three years alone and is currently building one of the most modern and efficient milk powder plants in Germany.
DMK Group also operates Europe's largest cheese factory, which is prepared for the future, thanks to various expansion projects in recent years. Its new mozzarella cheese factory in Georgsmarienhütte, for instance, is projected to meet the demand from growth markets such as Asia.
"DMK Group will rigorously continue its growth trajectory in the years to come," Muller says. "We are well-positioned for the future and will continue to make our mark in Germany and other countries as a quality leader with a broad product range and extremely reliable delivery capabilities."
Boosting nutrition in China, Asia
Recognising China's increasingly strong demand for high-quality milk products, especially for infants and children, DMK Group introduced Humana to the market through active dialogue marketing and open communication.
Addressing Chinese consumers' safety and quality concerns, Humana's brand communication focuses on its German origin, its role as part of the DMK cooperative and the fact that its own milk supply is used for production. The 600 controls that each batch undergoes are also explained to Chinese consumers in order to reassure them of the high quality of Humana products.
"From day one, Chinese consumers have adopted Humana as a high-quality brand that they can trust. First deliveries have flown off the shelves, and reports tell us that some consumers made multiple purchases from the start," says Stefan Eckert, head of DMK Baby. "We are planning for long-term growth with step-by-step coverage of all provinces in the next five years."
Humana aims to gradually expand further in other parts of Asia, where it is already present in Vietnam, Myanmar and Mongolia. With a sales office in Shanghai and one in Dubai forthcoming, the company is opening the door to attractive key markets. It is also setting up direct links to other countries with its international branch offices, and eyes countries in Eastern Europe and Africa.
Apart from Humana, Oldenburger is another DMK brand that is getting more attention from the Chinese market. The brand was presented and relaunched in May at SIAL China, Asia's biggest food and beverage exhibition.
Developed with the conscientious consumers in mind, the product portfolio highlights Oldenburger's German heritage, which is underscored by the "Quality - Made in Germany" seal displayed on each packaging.
Among the enhancements made for the Chinese market is the modernised packaging of Oldenburger's full-cream milk, which now comes in a tall, slim 200ml pack. Every pack comes with a straw, making it convenient to take and go for the increasingly mobile Chinese consumers.
The Oldenburger brand provides a diverse range of ingredients, focusing not only on consumers but also on food service industry clients including tea shops, cafes, bakeries and restaurants. These include various cheeses, butter, UHT whipping cream and evaporated milk, which are 100 per cent from Germany - from production to packaging.
Reinforcing its commitment to the market, Oldenburger has also launched a Chinese-language version of its website to educate consumers and support industry clients looking to incorporate Oldenburger products in their food businesses.
"Chinese consumers' palates and diets are changing towards healthy products - milk and milk products are a very important aspect of that," says Martin Ehrhardt, director of international marketing and sales, DMK Consumer. "We aspire to be part of this shift by creating a trusted consumer brand adapted to the Chinese market."
The next milestone is to replicate such success in other parts of Asia, where there is a similar trend towards increased dairy consumption.
"We look forward to learning more about Asian consumer behaviour and discovering their preferences and demands," Ehrhardt says. "Fulfilling these demands is the next big goal - and we are open to partnerships that will combine our know-how with local expertise to create the winning formula for success in the region and beyond."
http://www.dmk.de