DOUGLASDALE DAIRY
2 | Africa Outlook issue 90
AGRICULTURE
From
FARM to Fridge
Douglasdale Dairy is a key player within the South African food and beverage industry. We speak to CEO Rob Ward about the sector at large and the company’s operations within the space Writer: Marcus Kääpä | Project Manager: Kyle Livingstone
T
he dairy industry in South Africa is substantial. It is one of the largest agricultural industries in the country, providing livelihoods to more than 100,000 people, with large farms accounting for 80 percent of South Africa’s total milk production. Within the nation’s dairy industry, Douglasdale Dairy operates as a large, respected and well-known processor and distributor of dairy products in South Africa.
A TALE FROM THE PAIL Douglasdale Dairy was founded by Mr Thomas Douglas and his wife, Janet Alexander, who both immigrated to South Africa from Scotland in 1890. After establishing the farmhouse in 1905, the family began producing milk in the 1930s. A decade later, they began retailing their milk and hand delivered 240 bottles of milk a day, with the 1950s seeing deliveries by
horse and cart, and later by delivery men on bicycles. In honour of their influence over the local community, the Douglasdale area, a residential suburb in Sandton (Gauteng), was named after them. The late 1970’s saw the dairy change its focus to the processing and distribution of dairy products and the milking of cows on the farm was stopped. Douglasdale Dairy now sources its milk from the Eastern Cape, KwaZulu-Natal (KZN), and the Highveld Regions, servicing over 6,000 customers in the Gauteng, Northwest, Limpopo, Mpumalanga and Northern Free State Province. The original dairy is still operated on the very land on which it was started in 1905, and the passion for delivering fresh, quality products that began with its inception all those years ago is still found within its people and in every corner of the farm today. Africa Outlook issue 90 | 3
DOUGLASDALE DAIRY A MISSION FROM FARM TO FRIDGE Douglasdale Dairy’s company mission is to help fight hunger and malnutrition by producing the best quality products, at an affordable price for as many people as possible. The company strives to make its customers feel like they are the most important aspect of the business, by providing the best possible service, delivery and products at all times. Health is a critical part of Douglasdale Dairy’s business journey, and this extends to the environment as well as that of its people. This is exemplified in the company’s mission to reduce plastic bag usage, to which Douglasdale Dairy promotes a sustainable option in the form of handing out approximately 200,000 woven bags each year.
CLEAN WATER South Africa is well-known to be a water scarce country. In light of this fact, Douglasdale Dairy decided to invest in a water treatment plant which would allow the company to purify and reuse the water it requires to wash and sterilise its processing plant. To treat the water, two holding tanks were built. Each of these tanks have the capacity to hold one day’s worth of grey water. A DAF (Dissolved Air Flotation) system was also installed. Flocculants and coagulants are introduced into the grey water; this coagulates the fats from the grey water, and tiny bubbles are used to float the fat to the surface. The fat is then skimmed off and discarded in an environmentally friendly manner. The water is then pumped through aggregate, and a series of dams, where aerobic bacteria is introduced to further clean the water. The water then passes through a sand filter, microfiltration, ultra-filtration, UV lights and finally a carbon filter to a storage tank. The laboratory tests the water to see if any impurities are present. When 4 | Africa Outlook issue 90
Africa Outlook: Can you tell us about the dairy industry in South Africa at present? Rob Ward (RW), CEO at Douglasdale Dairy: “On a macro level, the industry in South Africa is challenging at the moment. On top of issues stemming from corruption, and skills shortage in local government which has resulted in a breakdown of basic service delivery, South Africa is still not able to produce sufficient electricity to meet our demand. “This has resulted in continued load shedding (enforced black outs for certain areas to reduce the load on the grid). Due to the breakdown of basic service delivery, South African companies are having fill the void. To ensure continuity of operations we have invested in back-up generators and a water purification plant. “These costs are not incurred by international dairy companies, in fact, many players in the
the all-clear is given, the purified water is then reused, and the cycle begins again maintaining a consistent use of clean and safe water throughout.
WASTE MANAGEMENT As well as clean water processing, Douglasdale Dairy has partnered with recycling company Pandae Green Solutions to manage the waste generated on the company’s premises. All waste is collected and sent to Douglasdale Dairy’s recycling station for sorting. During this process, all products are grouped into the various recyclable materials: HDPE, LDPE, PP and paper.
international dairy industry receive government subsidies. While subsidies in Europe may seem miles away from the South African dairy industry, by exporting dairy products into South Africa, local dairies are having to compete with these international companies. “At a micro level, SA has a very mature and developed primary dairy industry, but they are shackled by input costs (feed accounts for 50 percent of farmers costs) and with the huge maize and soya price increase seen over the last 18 months due to increased Chinese demand, margins and raw milk production have decreased. This has resulted in raw milk prices increasing substantially over the last six months and has put huge pressure on processing companies. “These challenges are part and parcel of the dairy industry in South Africa. We have a fantastic team at Douglasdale Dairy where everyone plays an important role in ensuring our success. I could not think of another industry or place I would like to work.”
They are then collected and taken for recycling. In total through this sustainability initiative the company has managed to reduce its landfill usage by approximately 75 percent, and it remains committed to using materials that are recyclable to further reduce company landfill usage. On top of this, to further promote recycling and allow Douglasdale Dairy consumers to participate in the recycling process, the company has partnered with Imagined Earth and their Reverse Vending Machine technology (RVMs) that allow consumers to ‘return and earn.’
AGRICULTURE
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Africa Outlook issue 90 | 5
DOUGLASDALE DAIRY CERTIFIED QUALITY In order to ensure the highest quality across its operations, every Douglasdale Dairy product is marked with a batch code for traceability. This enables the company to identify all components in the finished product. And while the dairy is situated on the same premises as where it started, the demand for Douglasdale Dairy’s product has outgrown the space available in suburban Johannesburg. That is why the company now works with a selection of farmers to supply its raw milk. Douglasdale Dairy follows a thorough vetting process when selecting the farmers supplying the company with raw milk. The company’s factory is FSSC22000 compliant. This ensures that the factory maintains the highest health, safety and quality standard’s when processing, packaging and distributing quality dairy products. Through this, Douglasdale Dairy can assure its customers that all products bearing the Douglasdale name are sure to be the best quality available. The company not only holds an export certificate, but its products are also Kosher and Halaal certified.
EMPLOYEE-CENTRIC VALUES Operating as a dairy business it is the individual hard-working employees that make Douglasdale Dairy what it is. In recognition of their efforts, the company has and continues to further support its staff at all levels so that each and every one of them can develop and grow. Exemplifying this, Douglasdale Dairy started a Long Service Awards Programme in 2019. This programme was put in place to recognise staff members that have been with the company for five through to 25 years. Douglasdale Dairy hold an annual awards ceremony where employees are given certificates and receive the recognition that they deserve. 6 | Africa Outlook issue 90
Africa Outlook: Can you tell us about the nature of Douglasdale Dairy’s supply chain? RW: “As a general rule we like to be in control of our own destiny as much as possible. That means that we do not outsource many functions at all. “One of our strengths is our distribution network. We deliver to our customers three times a week, and product quality is as important as customer service; it’s for that reason that we often deliver to customers outside of the delivery slots. It is a bit disruptive and costly doing these “special deliveries” as we call them but the long-term benefit of going the extra mile for our customers far outweighs the costs. “We also have our own in-house workshop where all our vehicles are serviced. We send all our new
vehicles to our regions and keep the older fleet close to our workshop in Johannesburg. “However, no business is an island, and we need to work closely with our suppliers as we rely on them for many critical items. We have found that the most important aspect of ensuring an efficient supply chain is based on relationships and open communication rather than contracts and SLA’s. In many businesses more time is spent on fixing the blame rather than fixing the problem. At Douglasdale Dairy, we focus on fixing the problem and then look at ways to ensure it does not happen again. “By being open and honest and treating our suppliers fairly we are able change the frame of reference from supplier to partner. By developing a partnership model where we assist our suppliers as best we can, they return the favour in turn.”
AGRICULTURE
Douglasdale Dairy’s contribution to �e environment! We recycle our grey water with our very own water purification process. COAGULANT
FAT TRAP RAIN WATER GUTTER
FLOCCULANT
GREY WATER PARTICLES
SKIM SOLIDS OFF
GREY WATER
START
CLEAN WATER
DOUGLASDALE DAIRY FACTORY
FINISH
PUMPED BACK UP TO FACTORY
FRESH RAIN WATER
DAF
FRESH WATER
WATER FALLS THROUGH AGGREGATE
UV LIGHTS FRESH WATER
ULTRA FILTRATION
CARBON FILTER
MICRO FILTRATION
SAND FILTER ANTHRACITE, SAND, GRAVEL
RAIN WATER DAM
Africa Outlook: What lies ahead for Douglasdale Dairy? RW: “Our focus at the moment is to manage our cost base. We have a number of projects relating to water, packaging and fuel where we are trying to improve efficiencies to remain competitive in a very tough consumer cycle. “These projects will allow us to fulfil our mission of being able to provide the best quality product at an affordable price.”
We recycle our waste at our own on-site sorting station.
WASTE IS COLLECTED FOR RECYCLING
GLASS
PAPER
WASTE IS COLLECTED
PLASTIC
WASTE IS SORTED
We hand out approximately 200 000 woven bags every year to help decrease the amount of plastic bags being used.
Douglasdale Dairy is also in the process of developing staff training modules that are tailored to specific jobs and roles or functions. This helps upskill the company’s workforce and provide them with the tools not only to do their jobs, but also equip them with the skills to prepare them for
more senior roles. Yet on top of this, the company offers non-work-related skills that have been made into training programmes. Douglasdale Dairy’s courses cover topics such as monthly budgeting which explains the impact of interest on a loan; a subject that
aids many in the community and promotes the understanding of financial impacts to better their futures. In addition to general training, Douglasdale Dairy also has a ‘TOP’ programme. This programme identifies TOP performing staff throughout the business. It’s open to all staff and the objective is to find top performing members and help grow and develop them so they can maximise their potential.
DOUGLASDALE DAIRY Tel: 010 976 1210 sales@douglasdale.co.za www.douglasdale.co.za
Africa Outlook issue 90 | 7
DOUGLASDALE DAIRY 1 Waterloo Road, Bryanston, Gauteng, South Africa Tel: 010 976 1210 sales@douglasdale.co.za www.douglasdale.co.za
PRODUCED BY AFRICA OUTLOOK MAGAZINE