Landshut, June 30, 2022. Bayerische Milchindustrie eG (BMI) has taken significant strategic steps to better position itself for the future. Its performance enhancement program is taking effect, leading to increased sales volume and revenue in 2021. Dr. Thomas Obersojer, CEO of BMI, reflects on the fiscal year with a mixed outlook: “Despite the diverse challenges from unpredictable market conditions, BMI’s dedicated employees successfully initiated and implemented many projects that contribute to the company’s long-term development.”
BMI eG recorded a 9% increase in revenue to €725 million in 2021 compared to 2020. Sales volume, at 333,000 tons, was slightly above the previous year’s level. At the beginning of 2021, BMI, with its strong focus on specialized wholesale and gastronomy, again felt the impact of COVID-19 lockdowns, which led to declining sales in that segment. However, this was offset throughout the year across all business areas: overall, the company increased sales in cheese, fresh dairy products, and ingredients. The Frankenland brand was modernized and strengthened with a regional milk production program and a comprehensive relaunch for both food retail (LEH) and bulk consumers. Following the general trend, BMI’s cheese sector also grew, with revenue increasing by nearly 14% compared to the previous year, and the Paladin brand, in particular, remains strong. Building on this, BMI plans to launch a particularly flavorful Paladin High Protein Cheese for food retail in summer 2022. In 2021, BMI also continued its role as a Bavarian refiner of high-quality raw materials from organic and traditional agriculture, producing globally sought-after food ingredients and holding a leading position in the world market for milk-based organic ingredients.
As part of its strategic realignment, BMI will concentrate on its Ingredients and Cheese divisions in the future. In March 2022, it sold its Fresh Food business unit, including the Würzburg plant, to Lactalis. BMI and Lactalis are currently preparing for a smooth transition, with completion expected in early autumn.
The milk payout price developed positively in 2021 and was competitive with the average North Bavarian milk price level from April onwards. In the fourth quarter of 2021, it faced some pressure due to strong developments among competitors in Eastern Germany. Through its well-established performance enhancement program, which showed noticeable results in 2021, and its long-term sustainable strategic orientation, BMI is working towards maintaining an attractive milk payout price.
Eleven BMI member supplier groups delivered a total of 754 million kg of raw milk. Including external purchases, 940 million kg of milk and over 2.1 billion kg of whey were processed in BMI’s plants. With investments totaling €13.9 million in 2021, BMI further optimized its production, increased capacities, and technically and structurally developed its plants, partly to tap into new growth markets.
