Consolidation Gains Momentum in Polish Dairy Sector Amid Financial Challenges
Source: The DairyNews
The financial situation in the Polish dairy sector remains challenging, driving a consolidation trend that is rapidly gaining momentum, according to local sources.
In recent weeks, the Polish dairy industry has witnessed a series of significant acquisition deals. Notably, German dairy giant DMK Deutsches Milchkontor is planning to acquire Warsaw-based Mlekoma Dairy. This acquisition, pending approval from the Polish Office of Competition and Consumer Protection, marks a significant shift in the Polish dairy landscape.
Mlekoma Dairy produces skimmed milk, whey, and cream powder, operating two production plants in central Poland – Mlekoma in Przasnysz and Foodexo in Brzeziny – with an average annual production of 42,000 tonnes of dairy products. Local news outlet Money reported on the growing interest of German businesses in Polish assets, including those in the dairy sector.
Simultaneously, Mlekovita Group, a leading entity in the Polish dairy industry, has finalized the acquisition of KaMos Dairy Cooperative. This strategic move will allow Mlekovita, already the largest dairy company in Central and Eastern Europe, to significantly expand its operations, managing a total of 26 dairy plants. Mlekovita emphasized that this merger will enhance the market and processing capabilities of the newly incorporated entity.
Dariusz Sapiński, President of the Management Board of the Mlekovita Group, noted that the current state of the Polish dairy market is far from optimal, accelerating the trend towards consolidation. “The present situation in the dairy market is difficult, and the gradual concentration of production and processing means that the dairy sector needs transformation more than ever,” Sapiński stated.
Statistics reveal that the Polish dairy sector is under strain. In 2023, the Polish Chamber of Milk expressed concerns over the deteriorating financial performance of dairy firms in the country. Last year, only 49.5% of dairy companies generated a profit, down from 79% the previous year.
The parties involved in these mergers view the acquisitions as mutually beneficial. The acquired assets will leverage the Mlekovita Group’s comprehensive supply chain to access new markets. “The merger with the Mlekovita Group will allow us to optimize production and logistics costs. KaMos will also gain nationwide recognition, popularizing regionally known and liked products,” the company stated.
Mlekoma Dairy produces skimmed milk, whey, and cream powder, operating two production plants in central Poland – Mlekoma in Przasnysz and Foodexo in Brzeziny – with an average annual production of 42,000 tonnes of dairy products. Local news outlet Money reported on the growing interest of German businesses in Polish assets, including those in the dairy sector.
Simultaneously, Mlekovita Group, a leading entity in the Polish dairy industry, has finalized the acquisition of KaMos Dairy Cooperative. This strategic move will allow Mlekovita, already the largest dairy company in Central and Eastern Europe, to significantly expand its operations, managing a total of 26 dairy plants. Mlekovita emphasized that this merger will enhance the market and processing capabilities of the newly incorporated entity.
Dariusz Sapiński, President of the Management Board of the Mlekovita Group, noted that the current state of the Polish dairy market is far from optimal, accelerating the trend towards consolidation. “The present situation in the dairy market is difficult, and the gradual concentration of production and processing means that the dairy sector needs transformation more than ever,” Sapiński stated.
Statistics reveal that the Polish dairy sector is under strain. In 2023, the Polish Chamber of Milk expressed concerns over the deteriorating financial performance of dairy firms in the country. Last year, only 49.5% of dairy companies generated a profit, down from 79% the previous year.
The parties involved in these mergers view the acquisitions as mutually beneficial. The acquired assets will leverage the Mlekovita Group’s comprehensive supply chain to access new markets. “The merger with the Mlekovita Group will allow us to optimize production and logistics costs. KaMos will also gain nationwide recognition, popularizing regionally known and liked products,” the company stated.
