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Edit Comment Close Premium member Presentation Transcript Westland Milk Product Presentation to EDANZ : Westland Milk Product Presentation to EDANZ Contents : Contents Overview of where Westland is now Where Westland started from How Westland entered its first markets Key financial and supply chain issues Recommendation for exporters Slide 3: Unique Geographical Location Milk supply covers an area of 400 km, from Franz Josef Glacier in the South to Karamea in the North Key Facts : Key Facts Founded 1934 (1968; Hokitika) Shareholders 329 Supplying Farms 378 Staff 289 Milk, Litres/yr 472 million (2007) Of NZ Total 3% Milksolids (kg) 43 million kg (2007) Revenue (NZD) $260 million (2007) Annual Production 72,000mt Westland Share Value $1.50/kg ms Mission Statement : Mission Statement To be an accomplished and innovative supplier of premium quality dairy and nutritional products, thereby meeting the expectations of our customers and shareholders Company Values : Company Values Respect From the milking of the cows to our products ultimate destination we are respectful and proud of everyone’s contribution Unity We come from a pioneering background where team work was and still is of paramount value Company Values . . . : Company Values . . . Dedication We are dedicated to providing a positive environment for the betterment of all Loyalty Our loyalty and genuine openness is ingrained in everything we do Milk Graph : Milk Graph Milk Production : Milk Production Currently processing capacity: 3.9 million litres/day Milk growth/production is increasing 7-9% p.a. Finished products will double in 10 years Milk growth is important to Westland’s business strategy Westland Milk Tree : Westland Milk Tree Wholemilk Separation Cream Skimmilk Skimmilk Powder Casein Milk Protein Concentrate Wholemilk Powder Butter Buttermilk Powder Additional Milk Processing Facilities : Additional Milk Processing Facilities Between 2002 and 2006 Westland spent $160M on milk processing facilities and added value product technology ($20M) including: Spray Drying and Packing Facilities Energy Centre Processing Facilities Laboratory Facilities AMF Production Casein and Whey Protein Facilities Protein Drier for Caseinates and Protein Hydrolysates Research and Development Facility Manufacturing : Manufacturing Powder driers Stork 2,000 kg/h Installed 1972 Niro 5,200 kg/h Installed 1992 Stork 6,200 kg/h Installed 2002 The latest Stork drier is an excellent investment. It is the most technically advanced plant in NZ, producing a broad range of powders from MPC, regular and instantised powders through to cream powder Protein drier Stork 4,000 kg/h Installed in 2005 AMF Plant 25,000 mt pa capacity Casein and WPC Plant Commissioned 2005 Caseinating Plant Commissioned 2006 Butter Plant 20,000 mt pa capacity Current Major Products : Current Major Products Westland Milk Products is the operating division for Westland Co-op Dairy Company Ltd and today produces: Butter Anhydrous milk Fat (AMF) Whole milk Powder Skim milk Powder Buttermilk Powder Milk Protein Concentrate Casein / Caseinating Nutraceutical / Nutritional products Where we started from : Where we started from Westland became an independent company on 16 October 2001 following deregulation of the NZ Dairy Industry 16 January 2002 – decision by Westland shareholders to remain independent Westland entered into arbitration to seek a fair and reasonable value for its shares in the NZ Dairy Board Westland and Tatua were the only companies which opted for independence from the NZ Dairy Board Where we started from . . . : Where we started from . . . Prior to deregulation, Westland sold most of its product through the NZ Dairy Board (“NZDB”) and had limited direct involvement in the international market Westland had a strong balance sheet on exit from NZDB On exit, Fonterra was a significant buyer of Westland product Upon standing alone it was necessary to invest in additional processing facilities to accommodate milk growth and diversify product mix Export Butter : Export Butter How we were able to enter our first markets : How we were able to enter our first markets Westland had a quality of product reputation Prior to deregulation NZDB customers singled out Westland Milk Products as a preferred supplier (Site 143) In effect on deregulation Westland had pre existing markets because of their reputation for quality How we were able to enter our first markets : How we were able to enter our first markets First year of independence Westland sold 90% of its product to Fonterra By year 2 of independence Westland Milk Products was selling 100% of its production Customers prefer to have more than one supplier to spread their risk and so Westland’s product was sought after Westland’s Board employed a CEO with strong marketing experience How we were able to enter our first markets : How we were able to enter our first markets Strong demand internationally for dairy ingredients coupled with limited supply (only 8% of world production is traded) Local market business (15% of sales) Westland sells ~85% of its product internationally using its own marketing associates and staff NZ dairy products in demand – no BSE, F&M, “clean green image” Many opportunities exist for strategic relationships with customers to supply products tailored to their requirements. Westland was able to supply these How we were able to enter our first markets : How we were able to enter our first markets Major markets are Asia, Middle East, Eastern Europe, North Africa, Americas, NZ and Australia The company has a reputation for premium quality products and has ISO 9001 certification Westland won the milk powder quality award for the 9th time in 11 years with 100% QC1 product. (2001) Westland needed to establish all the aspects of exporting which the New Zealand Dairy Board used to perform on its behalf. This included all the sales and marketing, financial, distribution and logistical aspects How we were able to enter our first markets : How we were able to enter our first markets Westland needed to employ a sales and marketing team, distribution, research and development, treasury, etc Westland is a niche dairy ingredients company with 72,000 mt products – representing 1% of the internationally traded market Diversified our product range High dairy ingredient prices currently make it very difficult to achieve desired premiums on nutritional products, but this business is less volatile Getting the product into the market : Getting the product into the market Slide 23: Supply Chain Farm Transport Manufacturing Storage Transport Warehousing & Distribution Shipping Customer Cultural Issues Sales & Marketing Lab/Product Quality Key Financial and Supply Chain Issues : Key Financial and Supply Chain Issues Skilled staff Sales and Marketing Cultural issues (customers) Customer References Credit Checks Terms of Trade Insurance Distribution Warehousing Maintaining Product Quality Product Presentation Key Financial and Supply Chain Issues . . . : Key Financial and Supply Chain Issues . . . Shipping Documentation Getting Paid Telegraphic Transfers Letters of Credit Bad Debts Treasury, Treasury Policy Invoicing Accounts Receivable Customer Complaints Procedure Key Financial and Supply Chain Issues . . . : Key Financial and Supply Chain Issues . . . Historically More commercial systems and infrastructure were established to manage the business To assist marketing of product, the following was put in place: brand development, website, product brochures Implemented further financial reporting and now have key performance indicators and rates of return in place Westland has high working capital requirements due to seasonal nature and inventory holding periods Establish International Banking, Domestic Banking HSBC, ASB and BNZ Key Financial and Supply Chain Issues . . . : Key Financial and Supply Chain Issues . . . Currently Business costs, especially compliance and energy costs are increasing significantly through all facets of supply chain from farmer to customer Bar coding is being implemented which will enable more efficient management of stocks Always identifying continuous improvement opportunities from all levels of supply chain Overseas Supermarket : Overseas Supermarket Recommendation for Exporters : Recommendation for Exporters Quality People Quality Plant and Product Communication to all levels Invest in information systems Information procedures and protocols Dedicated to the common goal Willingness to learn and accept change and continually improve Keep shareholders informed What makes Westland what it is today? : What makes Westland what it is today? Spirit / Attitude / Loyalty / Culture / West Coast Independence Pursuit of quality for all products Can-do attitude Strong customer focus Hands-on, Close Focus Fairness Good Governance/Directors Returns to Shareholders Conclusion : Conclusion The development of the business has taken longer than anticipated but today Westland is well positioned for the future There is a place in the market for nimble, innovative companies like Westland Milk Products Westland is young in marketing, but experienced in manufacturing The future looks exciting! Westland Milk Product : Westland Milk Product You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
milk Luysi Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 2010 Category: Education License: All Rights Reserved Like it (3) Dislike it (0) Added: November 27, 2008 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... By: sokeep (8 month(s) ago) plz allow me to download da file Saving..... Post Reply Close Saving..... Edit Comment Close By: sokeep (8 month(s) ago) its da best one Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Westland Milk Product Presentation to EDANZ : Westland Milk Product Presentation to EDANZ Contents : Contents Overview of where Westland is now Where Westland started from How Westland entered its first markets Key financial and supply chain issues Recommendation for exporters Slide 3: Unique Geographical Location Milk supply covers an area of 400 km, from Franz Josef Glacier in the South to Karamea in the North Key Facts : Key Facts Founded 1934 (1968; Hokitika) Shareholders 329 Supplying Farms 378 Staff 289 Milk, Litres/yr 472 million (2007) Of NZ Total 3% Milksolids (kg) 43 million kg (2007) Revenue (NZD) $260 million (2007) Annual Production 72,000mt Westland Share Value $1.50/kg ms Mission Statement : Mission Statement To be an accomplished and innovative supplier of premium quality dairy and nutritional products, thereby meeting the expectations of our customers and shareholders Company Values : Company Values Respect From the milking of the cows to our products ultimate destination we are respectful and proud of everyone’s contribution Unity We come from a pioneering background where team work was and still is of paramount value Company Values . . . : Company Values . . . Dedication We are dedicated to providing a positive environment for the betterment of all Loyalty Our loyalty and genuine openness is ingrained in everything we do Milk Graph : Milk Graph Milk Production : Milk Production Currently processing capacity: 3.9 million litres/day Milk growth/production is increasing 7-9% p.a. Finished products will double in 10 years Milk growth is important to Westland’s business strategy Westland Milk Tree : Westland Milk Tree Wholemilk Separation Cream Skimmilk Skimmilk Powder Casein Milk Protein Concentrate Wholemilk Powder Butter Buttermilk Powder Additional Milk Processing Facilities : Additional Milk Processing Facilities Between 2002 and 2006 Westland spent $160M on milk processing facilities and added value product technology ($20M) including: Spray Drying and Packing Facilities Energy Centre Processing Facilities Laboratory Facilities AMF Production Casein and Whey Protein Facilities Protein Drier for Caseinates and Protein Hydrolysates Research and Development Facility Manufacturing : Manufacturing Powder driers Stork 2,000 kg/h Installed 1972 Niro 5,200 kg/h Installed 1992 Stork 6,200 kg/h Installed 2002 The latest Stork drier is an excellent investment. It is the most technically advanced plant in NZ, producing a broad range of powders from MPC, regular and instantised powders through to cream powder Protein drier Stork 4,000 kg/h Installed in 2005 AMF Plant 25,000 mt pa capacity Casein and WPC Plant Commissioned 2005 Caseinating Plant Commissioned 2006 Butter Plant 20,000 mt pa capacity Current Major Products : Current Major Products Westland Milk Products is the operating division for Westland Co-op Dairy Company Ltd and today produces: Butter Anhydrous milk Fat (AMF) Whole milk Powder Skim milk Powder Buttermilk Powder Milk Protein Concentrate Casein / Caseinating Nutraceutical / Nutritional products Where we started from : Where we started from Westland became an independent company on 16 October 2001 following deregulation of the NZ Dairy Industry 16 January 2002 – decision by Westland shareholders to remain independent Westland entered into arbitration to seek a fair and reasonable value for its shares in the NZ Dairy Board Westland and Tatua were the only companies which opted for independence from the NZ Dairy Board Where we started from . . . : Where we started from . . . Prior to deregulation, Westland sold most of its product through the NZ Dairy Board (“NZDB”) and had limited direct involvement in the international market Westland had a strong balance sheet on exit from NZDB On exit, Fonterra was a significant buyer of Westland product Upon standing alone it was necessary to invest in additional processing facilities to accommodate milk growth and diversify product mix Export Butter : Export Butter How we were able to enter our first markets : How we were able to enter our first markets Westland had a quality of product reputation Prior to deregulation NZDB customers singled out Westland Milk Products as a preferred supplier (Site 143) In effect on deregulation Westland had pre existing markets because of their reputation for quality How we were able to enter our first markets : How we were able to enter our first markets First year of independence Westland sold 90% of its product to Fonterra By year 2 of independence Westland Milk Products was selling 100% of its production Customers prefer to have more than one supplier to spread their risk and so Westland’s product was sought after Westland’s Board employed a CEO with strong marketing experience How we were able to enter our first markets : How we were able to enter our first markets Strong demand internationally for dairy ingredients coupled with limited supply (only 8% of world production is traded) Local market business (15% of sales) Westland sells ~85% of its product internationally using its own marketing associates and staff NZ dairy products in demand – no BSE, F&M, “clean green image” Many opportunities exist for strategic relationships with customers to supply products tailored to their requirements. Westland was able to supply these How we were able to enter our first markets : How we were able to enter our first markets Major markets are Asia, Middle East, Eastern Europe, North Africa, Americas, NZ and Australia The company has a reputation for premium quality products and has ISO 9001 certification Westland won the milk powder quality award for the 9th time in 11 years with 100% QC1 product. (2001) Westland needed to establish all the aspects of exporting which the New Zealand Dairy Board used to perform on its behalf. This included all the sales and marketing, financial, distribution and logistical aspects How we were able to enter our first markets : How we were able to enter our first markets Westland needed to employ a sales and marketing team, distribution, research and development, treasury, etc Westland is a niche dairy ingredients company with 72,000 mt products – representing 1% of the internationally traded market Diversified our product range High dairy ingredient prices currently make it very difficult to achieve desired premiums on nutritional products, but this business is less volatile Getting the product into the market : Getting the product into the market Slide 23: Supply Chain Farm Transport Manufacturing Storage Transport Warehousing & Distribution Shipping Customer Cultural Issues Sales & Marketing Lab/Product Quality Key Financial and Supply Chain Issues : Key Financial and Supply Chain Issues Skilled staff Sales and Marketing Cultural issues (customers) Customer References Credit Checks Terms of Trade Insurance Distribution Warehousing Maintaining Product Quality Product Presentation Key Financial and Supply Chain Issues . . . : Key Financial and Supply Chain Issues . . . Shipping Documentation Getting Paid Telegraphic Transfers Letters of Credit Bad Debts Treasury, Treasury Policy Invoicing Accounts Receivable Customer Complaints Procedure Key Financial and Supply Chain Issues . . . : Key Financial and Supply Chain Issues . . . Historically More commercial systems and infrastructure were established to manage the business To assist marketing of product, the following was put in place: brand development, website, product brochures Implemented further financial reporting and now have key performance indicators and rates of return in place Westland has high working capital requirements due to seasonal nature and inventory holding periods Establish International Banking, Domestic Banking HSBC, ASB and BNZ Key Financial and Supply Chain Issues . . . : Key Financial and Supply Chain Issues . . . Currently Business costs, especially compliance and energy costs are increasing significantly through all facets of supply chain from farmer to customer Bar coding is being implemented which will enable more efficient management of stocks Always identifying continuous improvement opportunities from all levels of supply chain Overseas Supermarket : Overseas Supermarket Recommendation for Exporters : Recommendation for Exporters Quality People Quality Plant and Product Communication to all levels Invest in information systems Information procedures and protocols Dedicated to the common goal Willingness to learn and accept change and continually improve Keep shareholders informed What makes Westland what it is today? : What makes Westland what it is today? Spirit / Attitude / Loyalty / Culture / West Coast Independence Pursuit of quality for all products Can-do attitude Strong customer focus Hands-on, Close Focus Fairness Good Governance/Directors Returns to Shareholders Conclusion : Conclusion The development of the business has taken longer than anticipated but today Westland is well positioned for the future There is a place in the market for nimble, innovative companies like Westland Milk Products Westland is young in marketing, but experienced in manufacturing The future looks exciting! Westland Milk Product : Westland Milk Product