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Sales Cooperatives and their Importance in the Czech Republic and Abroad
Sardinia Latte Arborea Dairy Coop
Francesco CasulaGeneral Manager Latte Arborea Dairy Coop
Agenda
1. Latte Arborea Dairy Coop
2. Dairy markets, milk price volatility and Milk and Dairy products
consumer trends
3. Strategy and activity for sustainability of dairy farmers
Agenda
1. Latte Arborea Dairy Coop
Arborea Cooperative: where we are
Sardinia: 24,090 km2
Population: 1,6 milion people
It is considered as the most popular Italian Vacation Island
Company Presentation
Arborea Cooperative: who we are
Arborea is today the primary hub in the Sardinian dairy industry, the fourth dairy cooperative in Italy.We collect 90% of the cow’s milk produced in Sardinia
Members: 246 dairy farmers in Sardinia.Employees: 300 (offices, laboratories, production department, delivery)
Milk production: 550,000 litres per day from 50,000 cows (Holstein and Brown Swiss cattle) 193 Mio litres per year
Top level hygiene and quality standard are guarantee through out the dairy chain from field to farm to factory to consumer.
Enhance our members’ milk production through the management of the entire dairy chain with a sustainable approach for manufacturer and
processor, employees, customers, consumers and the territory.
Our commitment is to support the local economy and to improve the value our milk production are tightly linked to the principles the
company policy: mutuality, solidarity, sociality."
Our Mission
The Dairy Chain
1. Cultivation 2. Breeding 3. Feeding
4. Milking 5. Milk Collection 6. Control
9. Logistics7. Production 8. Laboratories
The constant commitment to the selection of a high level
productive heritage
And attention to the animal welfare
The Dairy Chain : Breeding
The protection of natural resources: the foundation of sustainable development in the supply chain
Soil, air and water are the focuses of the Cooperative, which has extended these issues and the planning for the entire supply chain and in particular to the production of milk at the farm. During 2013, the Cooperative together with the University of Sassari has investigated and quantified the emission of carbon footprint of our supply chain as a further guarantee of the sustainable development process we have started and above all a sustainable growth in Sardinia
Freshness and organoleptic qualities are preserved through a daily collection with22 trucks in 30 different collection routes all over Sardinia. We collect 500 tons/dayof milk.
The Dairy Chain : Daily Milk Collection
24.000 sqmt are coveredSurface : 61.000 sqmt
The main facility occupies an area of approx. 61,000 sqmt . The plant is very efficient with all the latest
technological solutions about milk production. This allows high performances and large volumes of
processed milk at a time. The facility can count on a productive capacity that is unique among Italian and
dairy industries, with five lines for milk , the fastest line for UHT milk reaches 15,000 pieces per hour.
Approximately 60 years of experience, constant growth and value, always in compliance with the strict
quality standards of its full range of products: milk and dairy products, cheese, fresh and ultra- fresh
products.
58 years of history also for Fattorie Girau, the other branch of Arborea Group, that has been producing
sheep’s and goats’ milk and dairy products since 1958, according regional tradition that achieve the highest quality standards.
The Dairy Chain : Daily milk processing
With a logistics and distribution chain that protects the quality and freshness of ourproducts from the farm to the consumer, we provide an important service to ourclients both at distribution platforms and shops.
The Dairy Chain: Logistics and distribution
Arborea Group Dairy Brands
Arborea
fresh cow's milk and UHT milk, 100% from Sardinian cows, fresh and ultre fresh cow’smilk cheese, but also soft and mature cheese (provolone, provole, provoline), cream cheese,slices, mozzarella, butter, cooking cream, whipping cream, ricotta, mascarpone, spreadablecheese, yoghurt, portioned cheese, whey drink, icream creambase preparation.Lactose free line : esl and uht milk, yoghurt, ricotta, butter , mascarpone and and dolcesardocheese
Fattorie Girau
GOAT’S PRODUCTS : fresh and UHT milk 100% from Sardinian goats, fresh, soft, semi soft andhard goat’s cheeses, goat’s yoghurt and butter, ricotta, grated cheese, portioned cheese, slicesof goat’s cheese.SHEEP’S PRODUCTS : soft, semi soft and hard sheep’s cheeses, ricotta, grated cheese, portionedcheese, slices of pecorino, spreadable creams, vegetarian cheese.
The Collection of the Milk at the Farms
% raccolta latte
Sardegna 100%
Arborea 89,15%
altri 10,9%
Arborea89%
altri11%
196,2 Mio litres of Latte Arborea cow’s milk collect in Sardinia in 2016
Our Products
Turnover 2016
Mln euro
Fresh Cow Milk 13,78
Fresh Goat Milk 1,86
UHT Cow Milk 44,49
UHT Goat Milk 1,78
Yoghurt 4,00
Cream 4,74
Butter 3,76
Mozzarella 21,04
Fresh Cheese 16,82
Other Dairy products 0,18
Raw Milk 20,69
Whey drinks 0,22
Goat milk cheese 3,88
Sheep milk cheese 4,81
85% Fresh Milk
17% Stracchino34% Ricotta
Nielsen – Iper + Super quote MKT Sardegna vol. AT dic 2013
11% Yogurt 34% Burro
37% Mozzarella
63% UHT Milk
Sardinian Market: % in volume
Objective?
Make Arborea a strong brand and relevant
outside the Sardinian boundaries maintaining its leadership
in Sardinia
Our Strategies for growth
ArboreaCows in Sardinia
Milk
Storytelling
1.ARBOREA:
Island on the islandA mythical and charming
place, with an ideal micro-climate for its proximity to
the sea. A protected territory, almost hidden, and
untouched. A “magical” and perfect Oasis
Storytelling
2.THE COW IN SARDINIA:
An unexpected element but a very curious topic
Storytelling
3.
MILKIntense taste that
remind you of authentic
flavours.
Storytelling
Here comes the communication and advertising campaign
The good taste and smell of milk depend on the natural characteristics of the area where the cows live and from what they eat, drink and breathe.
On the coast of Sardinia, there is a special place called Arborea. • Here the heat of the sun, the fresh air of the sea, the rich variety of herbs, passion and care of the farmers
make this resort a perfetc "oasis" for the cows’ welfare. For this reason, the milk produced by Arborea cows is a special milk: high-quality, full-
bodied and very rich from a nutritional point of view. Unique and Unmistakable taste.
Arborea. The happy island for cows.
Storytelling
24
The New Message and Creativity:
The Recipe to make good milk exists
25
The New Message and Creativity:
Let’s start a new Journey
New Packs that reflect the new message
Agenda
2. Dairy markets and milk price volatility
European Dairy Markets: Milk delivery in EU
European Dairy Market: Milk Delivery
European Dairy Market: farm milk price in EU
European Dairy Market: commodities milk price trend.
Farm Milk Price: Arborea, Italy, EU.
Milk Price / 100 LT,
including quality
premium, excluding VAT
LA UE ITADelta LA -
ITA
2011 42,43 35,04 39,64 2,792012 39,89 33,68 38,12 1,782013 42,39 37,64 40,02 2,372014 43,31 38,42 40,87 2,442015 38,76 31,80 35,74 3,022016 36,59 29,31 32,98 3,60
2017 (Jan - Jul) 39,74 34,38 37,66 2,08
Farm Milk Price: Arborea, Italy, EU.
TITOLO
Sottotitolo
( x 1.000 ) 2012 2013 2014 2015
Total 2.249.644 2.189.389 2.108.042 2.029.016
1 900 000
1 950 000
2 000 000
2 050 000
2 100 000
2 150 000
2 200 000
2 250 000
2012 2013 2014 2015
Fonte IRI ( Iper + super + LS + Discount )
2015 vs 2012 : - 220 milion liters
Liquid Milk (fresh and UHT) consumption in Italy
A 10% reduction in the last 4 years
… new consumer trends in EU market
Fonte: IRI. Ipermercati, Supermercati, Libero Servizio-Piccolo – Fatturato e Var % Anno Terminante Sett’15
Agenda
3. Strategy and activity for sustainability of dairy farmers
Farmer/Member
Human resource: the most important asset in the dairy chain
Banks
Clients Suppliers
Employes of Coop
Institutions
Human resource create economic value in the dairy chain
In a change dairy market we need to change quickly the way of think in all dairy part of the chain
CHOICE
38
MANAGE THE CHANGE
Dairy Markets change very quick
INCREAS UNCERTAINTY AND BUSINESS RISK
SUFFER THE CHANGE
Invest in themselves - Continuous improvement - Attention todetail that make the difference - Enthusiasm in making
39
We need to manage UNCERTAINTY at farmers level
How: Managment Training
The Dairy Market changes is pushing farmers to change themanagement model of the farm and urges them to introduce newideas, new behaviors, new production techniques, new informationand a new language.
40
Arborea Farmers
TRAINING
Sardinian
Sustainable Dairy
Chain
DWH and
Eco-Stalla
The strategy to manage the volatility of margins in dairy farms
Software for analytical detection oftechnical- productive and economic-financial data at farm level
Creation of a data warehouse thatcollects the technical and productiondata and cost of all the farmersmember
Farm Coop Latte
Arborea
Objective: to develop the reports to make possible acomparison of the individual farms and the middle of thechain ' Arborea ' , identifying potentially critical areas forimprovement .
Ecostalla
Farm Production Costs /100 lt. – Year 2014
Cost/ 100 lt milk Average % on Total Cost Min Max
Purchase feed cost 20,74 47,5% 16,30 23,92
Farm production feed cost 7,21 16,5% 3,21 12,27
Animal welfare and reproduction 2,23 5,1% 1,62 3,35
Consumables 2,14 4,9% 0,73 4,04
Utilities 1,06 2,4% 0,64 1,76
Other costs 2,52 5,8% 1,71 4,42
Human resource 5,39 12,3% 3,27 8,35
Cost not regarding the farm 0,74 1,7% 0,00 2,96
Depreciation 1,67 3,8% 0,33 3,10
Total cost – not including tax
and interest43,69 100,0%
14%
64%27,9
Added Value per cow
MIN:
€ 364
MAX:
€ 946
AVG:
€ 670
300
400
500
600
700
800
900
1 000
19 3 8 4 16 11 15 9 7 6 5 14 12 1 13 18 10 2
First 9 months 2015
VAT per capo presente
Ecostalla
44
Daily production per cow
AVG Min MaxAVG best 7
farms
Daily production per cow
present in the farm24,60 22,13 27,55 25,98
22,00
23,00
24,00
25,00
26,00
27,00
28,00
6 11 13 7 9 15 3 14 10 4 5 2 1 8 12
Řady1
45
Latte Arborea a Dynamic Coop: Innovation
Web & social media
Arborea shop
Events Goatand
sheepdairy
Export New
product
FACEBOOK: Editorial content
Event
Hero product
Twins cows
Happy news
E-Commerce
Land Cooking
FACEBOOK: Editorial content
FACEBOOK: Fan Latte Arborea trend
93.932 Fan al 29.09.2015
11.363
83.003
93.932
2011 2013 2015
shop.arborea.it
Arborea Shop
51
Web & social media
Arborea shop
Events Mercato ovi -
caprino
Export
Cibus 2016
Parma, 9 - 12 maggio
Internazional events
Singapore, Paris, Shanghai
54
Web & social media
Arborea shop
Events Goat and sheepdairy
Export
Fattorie Girau Goat Milk products
Fattorie Girau Goat Milk products
57
Web & social media
Arborea shop
Events Goatand
sheepdairy
Export Nuovi prodott
i
Export in 25 Countries in
the world
Export countries
Export packaging and size
Export: Macao HK case
Advertising in the supermarket
Export: Macao HK case
Arborea milk in Macao primary school and
special advertising in the bus 21 on the way
to school every day.
Export turnover
2 249 217 2 309 712
5 387 515
7 300 000
-
1 000 000
2 000 000
3 000 000
4 000 000
5 000 000
6 000 000
7 000 000
8 000 000
2013 2014 2015 2016 ( stima )
AD Arborea: No lactose dairy products
DELICIOUS YOGURT
WEY
UHT BASE FOR ICE CREAM
PREPARATION
Description of the project
► Product and equipment:
ICE CREAM aseptic base preparation ready to churn/mix (UHT treatment), suitable for traditional gelato equipment and soft icecream machine
► Distribution:
Room temperature not exceeding +25°C (shelf life 9 months)
► Preparation:
Finished product, no need to pasteurize, ready to use, very fast churning
► Results:
Tasty and creamy, ideal for either traditional gelato shop and soft cream machines
In Italy – Traditional Gelato Shops
data referred to domestic consumption not to production
FOCUS ON EUROPE AND ITALY
Consumption per Year in Million
Liters
Source: Tetra Pak data base
Type of ice cream : Traditional (no prepacked single serving)Source: Euromonitor 2014
Type of ice cream : (traditional + prepacked single serving + other categories)
5.8 Billion
Liters
420 Million
Liters
OPPORTUNITIES
Retail
HomeMade
(final
consumer)
Traditional
Gelato Shops
Out Of Home
Coffee ShopsVending
Soft Ice Cream
Machines
