Kaiserslautern – Hochwald is closing the majority of its dairy plant on Merkurstraße as early as September 2026. According to reports by BILD, 74 jobs are affected, while SWR cites a figure of around 80 positions. The company cites a lack of profitability as the reason. The plant had recently been supplying primarily the Chinese market, but sales declined and capacity utilization could not be reliably planned. The workforce was informed of the decision in late June, although a small milk intake facility will continue to operate for the time being. However, milk collection and contracts for dairy farmers from the Western Palatinate, Saarland, and France are set to remain unchanged.
Hochwald cites China business as reason for closure
In Kaiserslautern, Hochwald primarily bottled UHT milk. A Chinese joint venture initially ensured high capacity utilization, but orders later proved insufficient. Company spokesperson Kathrin Lorenz told BILD that sales volumes had become too low. Furthermore, it was no longer possible to reliably plan the plant’s capacity utilization.
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However, this development comes at a notable time for the group. The Hochwald Group’s business in China performed positively overall in 2025; in fact, at the end of June, the company described China as a growth driver for its international operations. Consequently, the decline appears to affect not total sales in China, but rather the economic outlook for production at the Kaiserslautern plant.
Record revenue does not prevent plant closure
Hochwald reported record revenue of €2.034 billion for 2025. EBITDA also rose to €191.1 million. Exports accounted for 42 percent of revenue, while 58 percent was generated domestically. Thus, the plant closure is not taking place against the backdrop of a declared economic crisis for the group as a whole.
Instead, the dairy company is continuing the “Prepared for tomorrow” strategy launched in 2023. This strategy aims, among other things, to increase efficiency and reduce costs. The company also reports higher energy and fuel costs for 2026. However, Hochwald does not cite these burdens as the specific reason for shutting down the Kaiserslautern site. According to the company, low profitability and fluctuating demand remain the decisive factors.
Dairy farmers keep their contracts – employees lose their site
Little is expected to change for regional dairy farmers in the immediate future. Hochwald will continue to collect raw milk from the West Palatinate, Saarland, and the adjacent region of France. However, the company plans to process these volumes at other locations in the future. SWR cites Thalfang and Mechernich as the new processing sites, while top agrar focuses primarily on a shift to Mechernich. Contracts and milk collection arrangements are to remain in place.
For the employees, however, the consequences are significant. The company is offering jobs at other locations to some staff members, though the number of potential transfers remains undecided. According to BILD, this option could be available to roughly half of the workforce. Meanwhile, management and employee representatives are still negotiating a social plan. Milk intake operations will continue for the time being with a staff of five to ten people. This final part of the operation is scheduled to close no later than the turn of the year.
Author: Blackout News
Sources: Foodaktuell (14.08.26) – Topagrar (14.08.26) – Bild (13.08.26) – SWR (13.08.26) – Hochwald (30.06.26)