FrieslandCampina and German dairy cooperative DMK Group have signed a mozzarella cheese contract manufacturing agreement, effective from 2019.
FrieslandCampina will supply milk and recipes and will market the finished mozzarella products, while DMK Group will provide the production facilities to manufacture the cheese.
To cater to this increased production demand, DMK will expand and modernise its Georgsmarienhütte manufacturing site in Germany to facilitate optimal mozzarella production.
Hans Meeuwis, president of FrieslandCampina Dairy Essentials said: “We have a strong portfolio in cheese and want to grow further in cheese types such as mozzarella.
“The cooperation with DMK fits in well with our strategy to further expand our process capacity through selective partnerships, besides own network investments.
“The co-manufacturing agreement will allow us to expand our portfolio in, among others mozzarella, to drive value with our members’ milk and to improve the service to our customers.”
Ingo Müller, CEO of DMK Group added: “We annually process about 8 billion kilos of milk. The cooperation with FrieslandCampina is part of our raw milk plan.
“In the future, our raw milk will come from several sources. First and foremost, we process our members’ milk and market our products.
“Secondly, we process milk within the scope of plant contract manufacturing agreement, like the agreement we have entered into with FrieslandCampina. In this way we will obtain a position in which we can make maximum use of our plant structure.”
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