Thursday, May 21, 2015

Dairy decided War: Members support German takeover of DOC Kaas – Financieele Dagblad (Registration)

DOC Kaas, the second cheese-maker from the Netherlands, is in German hands. The dairy cooperative from Hoogeveen is taken over by the German dairy giant DMK. The attempts by some Dutch parties to deal with DOC Kaas in the sea, have failed.

Hundreds of member dairy farmers of DOC Kaas have Thursday at a special meeting in Zwolle elected in majority before joining DMK. The vote showed that 95% of the votes cast for a takeover by DMK. Requires a majority of 66%.

Relief

The outcome was a relief for management and administration of DOC, because that is the bitter taste of the first attempt to cooperate with DMK, three years ago, washed away. There appeared then unexpectedly insufficient support for the board’s proposal.

Persuasion

It was exciting until the last moment or Thursday there was sufficient support 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 Hochwald tried to convince the farmers of DOC sure there was a better alternative, namely joining their dairy. They frequently sought publicity to achieve a turnaround

Netherlands had thus a short dairy war. Over and sounded blame there between the management of DOC and the other a party as A-ware and later Hochwald. Opponents felt that their offer was not taken seriously by DOC that the transaction with DMK was precooked. They claimed systems are being able to pay a better milk price.

Revenue

Joining forces creates 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.

DOC is a dairy cooperative of 1100 milk, one hundred in Germany, with a turnover of over € 600 million. The company wants Drenthe in the coming years to further expand the export of Dutch cheese and need for this scale and financial strength.

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