Transparent figures

Annual average milk price for unprocessed milk paid to the member companies of Uelzena eG (UG-MG): In 2017 the milk suppliers were paid a competitive milk price for raw milk (4.0% fat, 3.4% protein) of 36.54 cents per kilogram (ex ramp dairy, without VAT). This is more than in the previous year and more than the current federal average of 36.19 cents per kilogram. From the milk producers’ point of view, this is a good performance, which however could not compensate for the poorer prices they received over the last two years. Sufficient milk payout is necessary to ensure the long-term existence of agricultural companies.

Revenues (sub-indicator GRI 102-7): Consolidated Group sales rose sharply from approx. 529m euros (2016) to about 703m euros in 2017 - this is an increase of almost 33 percent. Background information on the development of revenues: sales volumes increased in almost all product groups and in almost all areas except specialty products. The total sales volumes for the main product groups rose by 10,431 tons. Added to that, there was a positive price development for butter, milkfat and cheese. This led to strong sales growth. The share of specialty products in total sales fell from approx. 21 to 16 percent in 2017.

Equity ratio (UG-EK): The equity ratio improved in 2017. It rose from 36.1 percent (2016) to 39.1 percent. Sufficient equity is one objective for the Uelzena Group because a sound financial foundation is important for the implementation of its strategic plans for the future.

Direct economic value generated and distributed (GRI 201-1): The generated value clearly increased from 2016 to 2017 from approx. 530m euros to more than 704m euros. This corresponds to an increase of about 174m euros. Therefore, the distributed value also rose from approx. 522m euros to more than 692m euros. By far the biggest cost factor was more than 620m euros paid to suppliers.

Materials used (GRI 301-1): The use of milk raw materials including semi-finished goods clearly increased from 544,889 tons in 2016 to 603,354 in 2017. The quantity of non-dairy raw materials including semi-finished goods also rose, but not as much, from 29,185 tons to 30,282 tons.

Recycled input materials used (GRI 301-2): In 2017, compared to the previous year, more recycled packaging material was used. It was an increase of 146 tons to a total of 1,977 tons. The percentage increased from 36.8 to 40 percent. Another positive aspect: the total quantity of packaging material decreased – despite the increase in sales. This development is predominantly due to the fact that customers are increasingly requesting bulk goods (silo, big bag, container).

¹ 100% of the quantities of the product-related procurement material groups have been considered as long as they were recorded in kg. No information is provided for adjuvant and process materials because the amount sourced have been considered to be negligible.
² New allocation of semi-finished goods from 2016 (retroactive correction in 2015)

Quantity of products provided/sales (sub-indicator to GRI 102-7): Total sales for the key product groups have increased from 2016 to 2017 by 10,420 tons (4.7 percent) to a total of 231,678 tons. The dairy business experienced a positive development of sales in 2017: milk fat plus 8 percent, milk powder plus 7 percent, delicatessen/sweetened condensed milk plus 4 percent, cheese plus 2 percent. The higher sales figures in the cheese sector were due to better prices.

Sales for specialty products declined (1.5 percent) which was mainly due to the contract drying and health food (nutrineo) sectors. The targeted profitability was not achieved for the specialty products.

In the strategic business fields – ingredients & contract manufacturing, instant beverages and health foods - sales increased by 4.9 percent thus exceeding the self-defined target.

¹ Summary of instant beverages, health products, specialty dry products and contract drying

Energy consumption within the organization (GRI 302-1): Absolute energy consumption increased from 243,082,118 KWh in 2016 to 251,797,344 KWh in 2017. The reason for this is the higher production volume. Energy consumption per production ton decreased slightly - this translated into an improvement of energy intensity (GRI 302-3). It fell from 1,200 kWh/kg in 2016 to 1,198 kWh/kg in 2017. This demonstrates the effect of several energy efficiency measures.

Direct and indirect GHG emissions (GRI 305-1 and GRI 305-2): The increase on production volume is the reason why absolute greenhouse gas emissions also increased compared with the previous year, from 28,859 to 30,822 tons. GHG emissions intensity (GRI 305-4) fell from 0.142 to 0.147 kg/kg due to the fact that our own cogeneration plants were shut down for a certain period of time for the installation of new and more efficient heat exchangers.
However, the value achieved in 2017 is still less than the value of the base year 2012. This year's decline in greenhouse gas intensity has had no serious impact on the positive long-term trend.

¹ New allocation of semi-finished goods from 2016 (retroactive correction in 2015)
² Production quantities not consolidated but stated additively. The energy intensity based on energy input is higher than the energy intensity calculated based on consumption (energy input incl. own electricity x efficiency = energy consumption).

Total water withdrawal (GRI 303-1): Total fresh water consumption rose slightly from 1,037,194 to 1,075,934 m3. With 5.12 m3 per ton, the water consumption per ton of product remained constant. The higher consumption is in part due to the fact that a new high-bay warehouse is currently being built at the Uelzen site and that additional water is needed for the construction site. Amongst others, the water is used to reduce dust development at the construction site. Added to that, in 2017 the Uelzena Group produced more hahal and kosher products.  These products require that only fresh water may be used for the production of the products as well as for the cleaning of the production equipment.

Total wastewater discharge (GRI 306-1): At 694,873 m³, the volume of wastewater in 2017 was higher than in the previous year (634,914 m³). The volume of wastewater per ton of product also increased from 3.15 to 3.30 m3/ton. The reason for the negative development: so-called vapors, i.e. non-reusable water from the drying process, were increasingly introduced into the wastewater, which is related to a technically obsolete evaporator. It will be replaced in 2018.

¹ Waste water only for the Uelzen and Bismark sites; waste water quantities for the Ratzeburg site are negligibly small; Warmsen site has its own sewage treatment plant

Total weight of waste by type and method of disposal (GRI 306-2): The total weight of waste increased slightly from 1,333.21 to 1,339.26 tons. The proportion of recyclable waste related to the production volume increased marginally again to 77.2 percent in 2017. This is - again - the highest value since 2012.

¹ Waste which is independent from the production quantity includes construction waste, garden waste and outdated files

Total number of employees (GRI 102-7) and total number of new employee hires: The Uelzena Group is experiencing an expansion in business activities. The number of employees is also growing in line with this development. In 2017 the Uelzena Group hired 57 new employees; the workforce grew by 22 to a total of 715 employees.

The rate of employee turnover (GRI 401-1-b) increased slightly from 6.43 percent in 2016 to 7.53 percent in 2017. The termination rate - which is not a GRI Disclosure but nevertheless plays a role in the target achievement system - was 2.57 percent and therefore above the target value.

* Data can not be collected retroactively.
¹ Employee-related performance indicators refer to all employees and sites of the Uelzena Group. Headcount is known.
² Sites are located within Germany, therefore no breakdown by region.
³ Apprentices and interns not included.

The average number of hours of training per year per employee (GRI 404-1) remained unchanged and was 6 hours per year. Simultaneously web-based learning was further developed and new training topics were offered.

It is remarkable that the average seniority (UG-BZ) decreased from 14.2 to 12.7 years. At first sight, this result seems to contradict the objective of keeping employees in the company for as long as possible. But looking more closely, it becomes clear that the reason for this development is by no means detrimental for the company: In 2017 the Uelzena Group hired many new employees, with the inevitable result that their short length of service reduced average seniority. Furthermore, in 2017 many long-serving employees retired thus reducing the average value even more.

Portion of spending on local suppliers at significant locations of operation (GRI 204-1): 77 percent of all expenditure on agricultural raw materials and packaging materials remains at local suppliers such as farmers or sugar producers. 18 percent of expenditure on services goes to local service providers.

Percentage of regionally sourced milk raw materials in volume (UG-RBM): Traditionally, the Uelzena Group sources a very high share of dairy raw materials from regional sources. In 2017, it amounted to 93 percent of all quantities delivered. This value is slightly above last year’s value (92 percent). Minor fluctuations in this value are normal and do not indicate a general trend.
The Uelzena eG is a cooperatively organized dairy. Liquid milk raw materials have special significance for us. The quantity of milk raw materials delivered by the members who hold cooperative shares determines - in addition to the reserves - the amount of equity. This indicator is important for several groups of stakeholders; it also serves for the determination of regional sourcing. In contrast, GRI 413-1 is defined and accounted for by the GRI organization as a value share. This is why we use similar indicators in order to cater for all information requirements.

¹ Regional supplier for packaging materials: Germany: headquarters of the supplier is decisive
² Regional supplier for non-dairy raw materials: Raw materials and semi-finished goods of suppliers headquartered in Germany
³ Regional supplier for dairy raw materials: 150 km radius around production sites of the Uelzena Group