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Production of cheese at capacity: Emmi is now expanding
Switzerland’s largest dairy is investing more than 100 million francs in its local market. In Emmen LU there is a new building for cheese production. With good reason: cheese consumption is booming.
Emmi’s cheese production is operating at full capacity and is now expanding.
Chocolate and cheese are probably the most typical Swiss products. When it comes to consumption, salty food has the upper hand. Last year, the Swiss smelled 10.4 kilograms of chocolate per head. Cheese, on the other hand, was more than double the amount: last year, per capita consumption was just under 22 kilograms; each year, a few hundred grams of cheese are added per capita. Consumption developed very differently during the blockade. Barry Callebaut, one of the world’s largest chocolate producers, reported a decline in chocolate sales of more than 14 percent for the March-May period on Wednesday.
The exact opposite is true for cheese, as Emmi’s figures show. Lucerne cream cheese, cave aged Kaltbach cheese or spicy Maxx ended up in large quantities on the shopping carts. The country’s largest dairy increased its cheese sales in Switzerland by three percent to almost 200 million francs in the first half of the year. Swiss cheese exports to Europe and the United States also did well. “This brings us closer to our limits of production capacity,” says Marc Heim, Emmi’s Swiss business director. The company was always ready to comply, he emphasizes. However, some types of cheese needed a special bonus. “With certain types of cheese we had to plan additional weekend shifts.” According to the monthly dairy statistics, in the first six months of the year around 5000 tonnes more cheese was produced than in the previous year.
High demand in retail during closing
This is mainly due to strong demand for dairy products in retail, but also due to border closures and the consequent loss of shopping tourism during the closure. “Additionally, higher milk prices have supported cheese sales,” says Heim. In the first half of the year, the price of milk went up 3 cents. Emmi was able to pass this on to retailers, which increased sales. “Only dairy farmers benefited from this,” Heim emphasizes.
Since 2017, total cheese consumption, in Switzerland alone, has increased by around 14,000 tonnes to 189,000 tonnes, according to Swiss milk statistics. Exports also continued to grow. This strong growth has consequences for production. According to Heim, Emmi will invest more than 100 million in Switzerland next year. For comparison: Emmi invested 106 million francs globally in 2019. At 50 million francs, although spread over several years, the largest investment is pending in Emmen in Lucerne. There, the existing cheese factory building will be replaced by a new one.
Biggest investment ever
It is the largest investment in Emmi’s history in Switzerland. “In the last ten years, the milk processed into cheese at the Emmen site has doubled and we anticipate increasing demand for the next few years,” says Heim.
The visualization of the planned large cheese factory in Emmen. In the background, the local Lucerne mountain, Pilatus
A modern, resource-saving cheese dairy is to be created. On Wednesday, Emmi received the building permit from the municipality. Construction should start this month. “Commissioning will begin in late 2022,” Heim says. First in parallel with the previous production. “Only when we have reached the quality targets will we stop production at the existing factory.”
Lucerne cream cheese in Germany, Kaltbach abroad
Emmen’s most prominent cheese is Lucerne cream cheese. Its sales figures are increasing considerably in Switzerland. “Thanks to its mild taste, it is very popular with many people,” Heim explains. Demand is also increasing for intensive cave-raised Kaltbach cheeses, often newer; this at home and, above all, abroad. “We are seeing strong growth in export figures.” Two of these cheeses are made in Emmen before maturing in the cave.
The focus of the milk processor’s cheese strategy is currently on meeting diverse customer needs with partially new formats and products. “We want different cheeses and formats for the different gastronomic options.” With biscuit maker Hug, for example, Emmi has brought cheese-coated life to stores. This deepening of the offer is currently the focus of the different types of cheese. Emmi’s Plans: Increasingly, cheese should also be eaten as a snack. Besides making cheese, Emmi is the largest cheese retailer in Switzerland. It also sells specialties from the village dairies.
Invest in automation and sustainability
In addition to the significant investment in Emmen, Emmi is improving its production mainly digitally and in terms of automation. “We have been using human-operated robots on Emmen for a few weeks,” says Heim. Emmi is also testing autonomous vehicles at Emmen. These carry empty containers to the production machines.
Another focus of Emmi’s investments is sustainability. At Suhr AG, the Mittelland dairy, which produces mainly milk, cream and butter, is currently connected to the local district heating network. “The company’s annual CO2 emissions will be reduced by 80 percent, or about 5,000 tonnes, from 2022, thanks to the majority moving away from natural gas,” says Heim.
