Landshut, June 26, 2024. True to its motto “Best quality for a sustainable future,” Bayerische Milchindustrie eG (BMI) achieved important milestones in its future planning during the 2023 fiscal year. At the same time, however, external factors such as persistently high energy costs impacted BMI’s business. Despite a negative annual result, a net profit was reported. “Even though some things didn’t work out as planned due to external conditions, we set important courses for the future,” summarized Dr. Thomas Obersojer, CEO of BMI. “It is thanks to the strong commitment of our employees that the challenges during the 2023 fiscal year were well managed.” By further developing its existing plants, the dairy company was able to secure the competitiveness of the Winzer site in particular for the coming years. The new construction project at the Zapfendorf site as part of the Masterplan Ingredients (MPI) is taking increasingly concrete shape. Good progress was also made in optimizing the cheese business.
Consumer Prices and Energy Costs Impact Results
Inflation-related consumer restraint and good raw material availability in the German milk market led to declining revenues for commodities, industrial goods, and private labels, and consequently to a devaluation of BMI’s inventories. In addition, there were still above-average high energy costs. Despite falling energy prices over the course of the year, these were still around €18 million above a “normal year.” For 2023, BMI recorded sales of €559 million. The previous year’s sales of €818 million still included the fresh food business sold to Lactalis and the Ebermannstadt cheese plant, which closed in March 2023. Approximately 18 percent of BMI’s 2023 sales were generated from organic products. 2.77 billion kilograms of milk and whey were processed into cheese and ingredients.
Investments in a Sustainable Future for the Sites
As part of the BMI Strategy 2030, the company invested in numerous projects for the technical and structural development of its sites, capacity expansion, and to open up new growth markets. The total investment volume amounted to €18.5 million. In addition to optimizing production in the cheese dairy at the Jessen site, the focus was primarily on the further development of the Business Unit Ingredients. The installation of a new lactose line at the Winzer site and the increase in hygiene standards there were also part of the strategy, as was the Ingredients renovation and new construction project at the Zapfendorf site.
In line with its sustainability strategy, BMI continued to work persistently in 2023 towards its goal of becoming climate-neutral at the company level. Firstly, the company began initial climate assessments together with some agricultural businesses. Secondly, it developed transformation concepts for reducing greenhouse gases for the two major sites, Jessen and Zapfendorf. In this context, BMI decided to have its climate targets reviewed by the Science Based Targets initiative (SBTi).
At the General Assembly on June 25, 2024, the former Chairman of the Supervisory Board, Klaus Schönfeldt, and his deputy, Helmut Hümmer, were retired. Martin Boschet, Hohenloher Molkerei eG, was elected as the new Chairman of the Supervisory Board of BMI eG after the General Assembly. His deputies remain Walter Bauer, Milchwirtschaftliche Beteiligungsgesellschaft, Heilbronn, and newly Norbert Münch, Qualitätsmilch Elbe-Saale. Torsten Maier, Milchliefergenossenschaft Elsterland eG, was newly elected to the Supervisory Board.
