Olpers Uht Milk Essay Example for Free

Olpers Uht Milk Essay First introducing about milk producing capacity in Pakistan. With an estimated 33 Billions Liters of annual milk production from 50 million animals managed by approximately 8 million farming households, according to latest statistics Pakistan is the 4th largest milk producing country in the world. It has a livestock and agriculture sector contributing over 10% to the GDP, and a milk economy that in value terms is 27. 7% of the total agriculture sector. It is an untapped market, expected to grow an additional 3 billion liters in the next few years at a growth rate faster than most sectors. Undeniably, a sector with such credentials can bring about not just a radical change but also a dairy revolution in the country. The annual milk production of 33. 6 billion liters in Pakistan is shared between a 71. 1% share for the rural economy and a much smaller urban share of 29%. Only 3% of the total production of milk is processed and marketed through formal channels. For the other 97%, a multi-layered distribution system of middlemen has evolved to supply milk. The contribution of the formal sector processed milk to real GDP in Pakistan is 0. 43% in 2004-05. Despite only a small percentage (3%) of milk being processed, the (UHT) market is growing at a steady rate of 20% a year. Presently 97% of raw milk produced in the rural economy is not linked to the market mechanism because of a number of reasons (defined ahead in this paper). Due to this reason, the dairy sector in the rural economy is not making a significant impact in the National economy in accordance with its potential and also with the quantity of milk, which is available. The White Revolution is targeted to achieve an annual production of 40 billion liters of milk by 2015; it aims to create an additional 3 million jobs in the formal economy and provide an estimated 350 million rupees per day in cash flow to farmers in the sector. The Dairy Vision till 2015 . Given success of the programs discussed in this paper, what might the dairy industry look like in the year 2015. The formal sector to be 40% of the total dairy industry. Low cost but good quality pasteurized milk to be available in cities and towns accounting for 70% of Pakistan’s population. Pakistan’s dairy industry meets the needs of consumers, thus minimizing imports. The range of goods offered to consumers is as wide as in say the markets of the Gulf. The well being of farmers throughout Pakistan is enhanced, and dairying is acknowledged to be a profitable enterprise. Dairying will have lifted millions of farmers above subsistence levels of activity. A thriving commercial dairy farming sector will be in place. Well-regarded Research Institutes will be active in their chosen fields, with a focus on meeting the needs of farmers. Quality of some sectors of the industry will be such that exports are viable. UHT milk was invented in the 1960s, and became generally available for consumption in the 1970s. UHT milk has a typical shelf life of six to nine months, until opened. It can be contrasted with HTST pasteurization (high temperature/short time), in which the milk is heated to 72 °C (161. 6 °F) for at least 15 seconds UHT MILK. UHT milk is a sanitary and veterinary controlled milk which is subjected to special thermal treatment (ultra-pasteurisation or Ultra High Temperature) which destroys germs and preserves vitamins and nutrients. In the absence of bacteria activity and with the pre-sterilisation of the packaging, the milk becomes less perishable: through ultra-pasteurisation, the validity period of milk is prolonged without adding preservatives. The temperatures lies beyond the boiling point (135 150 ° C) but the boiling time is very short: 2-4 seconds). This very short stage of heating and cooling destroys bacteria and microorganisms and ensures the preservation of vitamins and proteins, unlike the normal boiling of milk, which doesn’t destroy all germs and bacteria, instead destroying its nutritional value. The validity period varies between 3-6 months, depending on the quality of the raw milk collected from farms (deriving from hygiene during milking alongside handling and storing conditions until the moment of reception in the factory). After unsealing the box, UHT milk need to be kept refrigerated and consumed within the next 3 days. HISTORY OF UHT MILK The aseptic packaging implies that both packaging and filling environment be sterilised thus preventing any recontamination of the food after being â€Å"purified† through thermal treatment. Furthermore, if we talk about UHT milk, we must know that a multilayer cardboard packaging is used, which also contains an aluminum foil in the middle, captured between the inner layers of cardboard and polyethylene. The cardboard box protects the milk from contact with light and oxygen, two factors that contribute to vitamin degradation. Vitamin B2 in milk exposed to light for 12 hours for example in a transparent recipient, degrades up to 35%. Aseptic technology is based on the invention of the Swedish company Tetra Pak, which created the first aseptic packaging in 1961. This packaging allows storing milk or other perishable liquids for a period of 3 6 months, without adding preservatives or refrigerating the product. By forming a barrier and impeding oxygen from penetrating (the packaging consists of multiple cardboard, aluminum and polyethylene layers for the food industry) and using a special technique to sterilise the packaging, aseptic technology ensures the protection of food against environmental aggressions. The International Institute for Food Technologies declared the technology of aseptic processing to be â€Å"the most important innovation of the 20th century in the industry†. Tetra Pak packaging can consist only of the cardboard and polyethylene layer (both on the outside and on the inside), in which case it is used for pasteurised milk. For UHT milk another special packaging material is used, which contains aluminum foil in the middle. Thus the packaging maintains the contents and the milk properties intact for the whole validity period of the product, because it impedes germs and light from penetrating the package (it is a known fact that light diminishes nutritional value of milk) Louis Pasteur already carried out villagers and improve their socio-economic status by experiments on sterilization of milk in bottles, but it was utilizing the agricultural raw materials. The solution is to not until around 1960, when both aseptic processing and link of know edge, skills and investments into the villages, aseptic filling technologies became commercially not only keeping appropriate technology in subsistence available, that the modern development of UHT processes level, but giving new approach in substantial manner so started. UHT-treated milk and other UHT-treated liquid that large value addition even within the limited food products are now accepted worldwide, but it has not investment is affordable by them at villages themselves.always been like that. The first UHT plant operated on the Milk production began 6000 years ago or even principle of direct steam injection. Compared with the inearlier. Practically everywhere on earth, man started container sterilization plants, the new UHT plants soon domesticating animals. As a rule herbivorous animal, gained a reputation for producing an excellent flavour. multipurpose animals were chosen to satisfy his need The first indirect plant was introduced on the market some of milk, meat, clothing etc. Farmer produces the food ten years later. Research and development have been for all human being, however today his status is intense since UHT was first introduced. Modern plants weak. Milk production is the efficient crop to him deliver a superior product with colour and nutritional and will help to improve their income. It is possible values practically unchanged. ABOUT PAKISTAN In Pakistan, modern milk processing in the dairy sector started in early 1960s, and by mid-1970s 23 milk pasteurization and sterilization plants were set up. With one exception, all of them are closed due to low consumer acceptance, the short shelf-life of the product and lack of trained manpower. The first UHT plant was set up in Pakistan in 1977. The success of this plant attracted many other investors also and during 1983-87, 20 new plants were set up. In the current situation, UHT capacity in the dairy industry is more than the demand for the product. Existing plants are operating below capacity and growth in demand is not likely to keep pace with the demand for relatively high-priced UHT milk. Initial UHT milk processing Plant IN Pakistan| Plant| Start up| Installed Capacity (liters/day)| Milko, ltd. Lahore| 1977| 25,000| MilkPak limited, sheikhupura| 1981| 150,000| Pakistan Dairies, Sahiwal| 1983| 50,000|. Halla, Pattoki| 1984| 75,000| Chaudhry Dairies, Bhai Pheru| 1986| 80,000| Milkways, tandlianwala| 1987| 90,000(2)| | | | | Plant| Location| Manufacturer of| Year of Establishment| | Nestle Milkpak ltd | Sheikhupura| UHT plane milk, UHT cream, Milk powders, yogurt| 1981| | Nestle Milkpak ltd| Kabirwala| | UHT plane milk, UHT cream, Milk powders| 2005| | Haleeb Foods limited| Bhai Pheru| UHT plane milk, UHT cream, Milk powders, yogurt| 1986| | Haleeb Foods limited| R. Y. khan| UHT plane milk, UHT cream, Milk powders| 2005| | Nirala Dairy Pvt Ltd| Tandlianwala| UHT milk, UHT cream, Milk powders| 2004| | Premier dairy Pvt. Ltd. | Lahore| UHT plane milk, Milk powders| | | K K Dairy Pvt. Ltd| Lahore| UHT plane milk, Milk powders| 2005| | Shaker Gunj Foods ltd| | Jaranwala| UHT plane milk, UHT flavored milk, Milk powders| 2003| | Noon Pakistan| Bhalwal| UHT plane milk, UHT flavored milk, Milk powders| 2003| | Engro Foods Ltd| Sukkhar| UHT plane milk, UHT flavored milk, Milk powders| 2005| | Engro Foods Ltd| Sahiwal| UHT plane milk, Ice cream| 2007| | Royal dairy| Karachi| | UHT flavored milk| | | Millac Foods Pvt. Ltd. | Lahore| Milk powders| |. | Military Dairy| Okara| Milk powder and cheese| | | Prime dairy| Lahore| Yogurt| | | Butt dairy| Tandlianwala| Milk powder| | | Idara-e-Kissan| Pattoki| | Pasteurized milk and Milk powder| | | Gourmete| Lahore| Pasteurized milk and ice cream| | | Adam’s Dairy| Sahiwal| Cheese and whey powder| | | Alpha Dairy| Jhung| UHT plane milk, Milk powders| | PROCESSING TECHNIQUE OF UHT MILK ANGRO FOOD INDUSTRY Foods is among the biggest and fastest growing conglomerates in Pakistan with a vision to cater to local needs with products conforming to global standards. Highly passionate about providing millions of people across the length and breadth of Pakistan and beyond with the ultimate brand experience, our product portfolio comprises some of the countrys biggest and best selling brands including Olpers, Olpers Lite, Olfrute, Omore, Omung, Omung Lassi and Tarang. But whether it is our thick, creamy all-purpose milk, scrumptious ice-cream high on nutrition content or refreshing range of fruity beverages, our approach remains largely the same as we strive to keep product innovation at the forefront of our guiding philosophy and consumer satisfaction at the heart of our operational strategy. The word Engro stands for Energy for growth. Engro Corporation limited formerly known as engro chemical Pakistan limited is one of the largest corporation in Pakistan. Engro foods Limited is the subsidiary of Engro Corporation Limited and has started his operations in 2006 (Our Company, 2013). Engro Corporation has chosen the dairy market as their next target to capture. Engro foods are the biggest competitor for the contemporary organization in the dairy industry like Nestle, Haleeb, Good Milk, and Nurpur. Engro foods are coming up with the quality and reliable product and launch multiple products like Ice cream, Milk powders, Fruit juices, and Flavored Milk. 1. 2 Olper’s Milk Olper’s Milk is the brand of Engro Corporation Limited started in 2006, which is providing Milk to the customer in Pakistan. Olper’s Milk is getting more and more reputation every day in the dairy market as Olper’s is providing quality milk and cream to the market. Olper’s Milk is highly Ultra heated milk to preserve the thickness of the milk. Olper’s Milk is the major competitor for the existing organizations in the dairy milk industry. Olper’s Milk has achieved a strong consumer base due to his good quality product all across Pakistan. Olper’s Milk is available in different packs of different weight which is Stock keeping unit (SKU), of 200 ml, 500 ml, 1000 ml, and 1500 ml value packs. In Pakistan Milk contribute 11% to the GDP, and 35 million people are involved in dairy farming (Jassar Farms (Pvt) Limited, 2013). Olpers has secured 51% Market Share in year 2012 (Khud Pakistan Annual Report 2012, 2012). Engro Foods which has captured 51% market share in the 4th quarter of 2012 is the giant foods service provider in the food and beverages industry of Pakistan. Engro food is the subsidiary of Engro Corporation Ltd. started his operations in 2006. Engro foods are competing with giant companies currently in the food industry and the growth rate indicates that engro foods are big threat for these companies. Over 5 million people in Pakistan are using engro foods products, and over 50 million people start their day with Olpers Milk. Engro foods have two milk processing plant located in Sukkar, and Sahiwal. Engro have one dairy farm in sukkar named NARA dairy farm, which is producing 25,285 liters per day, and a total herd size of 3,444 animals of which 1,707 is part of the milk cycle. Engro foods have over 350 distributors across the country which is covering 12 regions. Olpers have three distribution centers in Islamabad, Sukkar, and Sahiwal. Engro foods have consumer centric marketing strategy for their brands which made engro a giant in the food and beverage industry. 250 ml serving of Tetra pack Calories| 159| Sodium| 0 mg| Total Fat| 0 g| Potassium| 0 mg| Saturated| 0 g| Total Carbs| 12 g| Polyunsaturated| 0 g| Dietary Fiber| 0 g| Monounsaturated| 0 g| Sugars| 0 g| Trans| 0 g| Protein| 8 g| Cholesterol| 0 mg| | | Vitamin A| 0%| Calcium| 22%| Vitamin C| 0%| Iron| 0%| Operations Olper’s Milk is managing its operations in a way to maintain the freshness, quality, and thickness of the milk. Production is the main area responsible for making output of inputs being processed. The Production Manager is responsible for making sure that a needed and proper raw material is provided on timely basis, being processed effectively, and turned into finished goods. The production manager has to supervise all the production process and to make sure that the work is going smoothly and to make it more interesting for the staff. The production department has shift in-charge whenever he takes the control he has to review the ongoing production and what material is needed to order for successful completion of the output. They always communicate with the employees how to handle machinery, packaging material, and quality assurance. Marketing Sales Marketing is the major revenue producing area in any business to plan, price, promote, and distribute product to final consumer. Olpers Marketing includes Situational Analysis, Target Market, Objectives Goals, Marketing Strategies and the Marketing Mix, and Monitoring and Controlling. Due to good marketing strategies engro foods growth is 35% per year, and 181% growth in Earning per Share (EPS) per year, in 2012, (anwer, imran ;, 2013). Olpers have over 350 distributors which are serving 12 regions across Pakistan from the three distribution centers in Islamabad, Sahiwal, and Sukkar. Olpers supply chain has secured 24% growth in volume 5 | P a g e delivery of dairy and ice cream products in the year 2012 (Khud Pakistan Annual Report 2012, 2012). General Administration Olper’s Top management is highly qualified, talented, experienced, and holds degrees in Business Administration from the reputed organization of Pakistan and USA. These managers know the importance of team work, commitment, coordination and support of different department to achieve a common goal of the company. In the year 2012, the Board of Director held 6 meeting to cover all the activities and new initiative to be taken in near future (Khud Pakistan Annual Report 2012, 2012). Human Resource Management. Engro foods have a well-established Human Resource department which support in the company’s growth. Olpers has an innovative, efficient, and talented workforce. Engro food’s HR is one of the best workforces in the country, which is because of its up to date HR Practices the most remarkable of which is recruitment, hiring, training development, performance appraisal. The performance appraisal system of Engro has been declared to be the best in industrial sector of Pakistan. Engro’s Human Resource department has a best leave system. The Human Resource department at Engro foods is doing succession planning and implementing other HR policies pertaining to motivation, retention, and training development of the employees. Engro foods have a best Compensation Administration in the industry, and providing competitive packages to their employees relatively higher than the competitors. Engro Human Resource offers 23 days holiday per to each employee. Engro Human Resources provides PERKS to the employees on top position in type of Car. Engro food has a proper reward system to stimulate performance and productivity of employees. Engro foods believe on equal employment opportunity, and have transparent, merit based performance management system, provide opportunity to employees to acquire knowledge for technical and managerial skills via class rooms, and on job training. Besides this engro provides an environment from all forms of discrimination, and harassment at workplace, provide flexible working arrangement for all, have good reward policies liking to performance (Booklet, 2012, p. 44). Technological Development Olpers has realized that for successful operations there must be an up to date technology to meet the challenges of the market and to compete in the industry. Technology can be a source of competitive advantage for the company. Olpers have latest and unique technology which has been using for pasteurizing, purifying, and preserving the milk. Olpers uses imported plants machinery for the milk processing. They have a proper system of transferring milk from one place to another which protects the milk from light, heat, and bacteria. The Research and development department of Olpers is very efficient and keep look on the new technologies being introducing in the market. Olpers has two processing plants and production farm (Khud Pakistan Annual Report 2012, 2012). Olpers plant is located at the distance of 8 kilometer from the National High way Sahiwal Bypass Pakpattan Road which covers an area of 33. 5 acres of land and its production range is 70 SKUs of dairy Olpers, Tarang, and Omore. Engro foods has made some changes in its North Plant which include Installation of a new AMF plant with a production capacity of 3000 liters per hour, Installation of two new A3 lines with a production capacity of 6000 liters per hour, Installation of a new SL-900 (Stick production line) with a production capacity of 720 liters per hour, Installation of two new Ecolean lines with a production capacity of 2250 liters per hour each (Khud Pakistan Annual Report 2012, 2012). The Engro foods South plant is located at a distance of 1. 5 kilometer from Sukkar Barage, which has covers a 27 acres of land (Khud Pakistan Annual Report 2012, 2012). Procurement Olpers has its own dairy farm located in Sukkar named NARA dairy farm, which covers 50 acres of land with an additional acreage available for further expansion, and currently have herd size of 3900 animals, which makes it the country’s largest dairy farm. (Khud Pakistan Annual Report 2012, 2012). The farm currently produces 25,285 liters per day with a total herd size of 3,444 animals of which 1,707 is part of the milking cycle (Recipes for Success, 3rd quarter, 2012). Olpers is also collecting milk from rural farmers and have suppliers who provide milk on timely basis to make it possible to offer quality milk to the market. Olpers is focusing more and more on quality of raw milk being collected and conducted a test to check the quality and freshness of raw milk after the test the milk is transferred to the plant for further processing. Internationally recognized test were been conducted to check the raw milk such as adulteration, Microbiological contamination, and adequacy of nutritional contents. The test being performed in the initial stage include testing smell, taste, color, temperature, clots boiling, fat test, and iodine value. Olpers has established strong relations with its suppliers, farmers, and machinery providers from abroad. Innovation New olpers milk (3d technology) Engro Foods’ flagship brand Olper’s unveiled new and innovative packaging formats using holographic technology to create a 3D simulation at a local shopping mall. The new packaging formats include a new format for the region that employs Ecolean technology for 250ml, and Tetra Edge for 1 liter pack. Ecolean also referred to as Olper’s Mini Jug is a specialized and convenient jug-shaped pouch that offers ease of pouring and handling the pack. It is an eco-friendly and biodegradable packaging with microwaveable capabilities. Tetra Edge, on the other hand, is a premium-packaging format with benefits of a tilted head and a heli cap, which controls milk spillage, increases the usability of the pack and keeps the milk smell-free. Both these are newest innovations in milk packaging, not just in Pakistan but worldwide. Olper’s is Engro Foods’ flagship dairy brand and has emerged as the leading dairy product in the market since its launch in 2006 after gaining preference over other established brands and securing a loyal consumer base all across Pakistan. Olper’s Milk is sheer indulgence in every sip and is backed by its high nutrition content and invigorating freshness that have become synonymous with the Olper’s brand. The new packagings were unveiled by Olper’s Brand Ambassador Marina Khan. Olper’s created a high definition, extremely intelligent holographic 3D content iGhost to create a jaw dropping virtual world to interact with audience and to take them on a journey which they have never seen or experienced before. iGhost is a technique which creates three-dimensional images. It involves the use of a laser, interference, diffraction, light intensity recording and suitable illumination of the recording. Future of olpers milk olumetric growth of 50% is expected in the dairy segment combined with Rs10 per litre price hike in Olpers and Tarang during April to June 2012,† estimates BMA Capital as detailed account will be released on a later date. Engro Foods became the leader in tetra pack milk market in 2010 and holds a 44% market share as of March 2012. The result is in line with market expectation as analysts estimated the local food giant to make around Rs1 billion. Sales revenue grew by 47% to Rs19,765 billion during the period review, says a notice sent to the Karachi Stock Exchange on Tuesday. The outgoing quarter witnessed addition Omung Lassi to its portfolio. The product is still in the introductory phase and yet to post any significant result. The growth curve is likely to continue upwards as it plans to introduce another 13 products in the near-term future, say analysts. Engro Foods earlier this year announced plans to invest Rs8. 7 billion in expansion this year. Of this Rs2 billion has been set aside for the powdered milk business, whereas the rest will be divided between cold chain infrastructure development, dairy capacity expansion and livestock acquisition. The ice cream segment’s contribution in revenue is also expected to increase to 9. 5% in the second quarter of 2012 from the preceding quarter’s 4. 2% owing largely to a seasonal uptrend in sales, according to BMA Capital. The stand out in the profit and loss statement was financial charges. Financial expenses – the cost of carrying a debt – declined by 10% indicating lower capital expenditure, which is concerning especially given the company’s aggressive expansion plans . Gross margins improved 3. 51 percentage points to 24. 5% thanks to higher prices for premium Olpers brandOther income increased by 294% to Rs172 million likely due to a better cash position. Meanwhile, financial charges decreased by 16% to Rs441 million during January to June 2012. Going forward, market share expansion in the company’s flagship brand Olpers is expected while Omung will likely eat into the loose milk market as well, according to analysts.