DOC Kaas, the second cheese-maker from the Netherlands, is in German hands. The member dairy farmers agree. The dairy cooperative from Hoogeveen is acquired by Deutsches Milchkontor Group, DMK, the largest dairy company in Germany. Bundling is a fact in early 2016.
The attempts by some Dutch dairy farms to the members and management of DOC Kaas other thoughts bring have failed. They wanted a new Dutch dairy DOC set. They raised their opposition to the sale to the Germans.
Hundreds of member dairy farmers of DOC Kaas on Thursday at a special meeting in Zwolle overwhelmingly elected before joining DMK. The vote showed that 95% of the votes cast for the acquisition. Requires was a majority of 66%. Nearly 85% of the votes present at the meeting in the IJsselhallen.
The ball is in the 9,000 member dairy farmers DMK to mid-June to approve. The works council of DOC has not yet determined. In both cases, is not considered a blockade.
“We are delighted that so many members a merger with DMK also as the best option see the goals of DOC to achieve short and long term: a competitive and stable milk, continuity and guaranteed purchase, “said Arjan Schimmel, CEO of DOC
Relief
The outcome was a relief for management and administration, because that is the bitter taste of the first attempt to cooperate with DMK, three years ago, washed away. There appeared as unexpected to be too little support for the board’s proposal.
It was until the last moment unclear how much support there would be for the proposal to merge with DMK. DOC had no less than 19 meetings convened to convince the members of the accuracy of this strategic choice.
But competitors like A- ware and the German cooperative Hochwald tried to convince the farmers of DOC sure there was a better alternative, namely joining their dairy. They sought in recent days frequent publicity to bring about a change.
Blame
Netherlands had thus a short dairy war over there and sounded accusations between the management of DOC and the other A-ware and Hochwald. Opponents felt that their offer was not taken seriously by DOC; that the transaction with DMK was precooked. They claimed moreover to pay a milk better than the intended partner.
A true puts the hatchet down, as has become clear . “We respect the outcome. In a cooperative members have the final word. “The family business from Lopik, € 1.1 billion turnover, concerns with ‘chain partners to build on the shortest and most profitable agrifood chains. The company is already working with companies like Fonterra of New Zealand and the Dutch DeltaMilk. “We are confident that DOC even now it’s come in German hands, unabated for fattening the added value of Dutch natural cheese optimal”, says CEO Jan Anchor
The alliance of DOC and DMK creating a Netherlands-German dairy bloc with a combined turnover of over € 6 billion. By comparison, FrieslandCampina in the Netherlands market leader with an (international) sales of over € 11 billion.
Less
DOC is much smaller than DMK, has 1100 dairy farmers one hundred in Germany, and has a turnover of more than € 600 million. The company wants Drenthe in the coming years to further expand the export of Dutch cheese and needs for that scale and financial strength.
DMK has a wider range of products: it also makes baby food, ingredients and other dairy products, but on the other hand the many sales on the local market. International sales are relatively modest.
DOC is a subsidiary of DMK. The Germans pay to offset the financial differences between the two companies, a cash consideration of € 20 million to the members of DOC. The cooperative Drenthe takes a share of DMK and one member represented on the supervisory board of DMK and two members in the general meeting of shareholders. The cooperative will soon supply all the milk to DMK the same milk as this pays to its own member-farmers. DMK years paid a lower average milk price than the Dutch cooperatives.
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