2.3.1. Ķelmēni bakery
Short Schedule Farm description Start point/Challange Successful elements
Place, map location
Name: „Ķelmēni” Web site: kelmeni-zs-maizes-ceptuve.infopage.mama.lv/ E-mail:email@example.com Country: Latvia Region: Gulbene City: Ranka county
Key Words Why is the topic interesting?
Bread, organic grain
Food market - Quality Product (Eco product) - Quality Label Direct Distribution - Specific Niche - Local Business
“Ķelmēni” have succeeded in combining organic methods of farming and traditional baking technologies with active search for their specific niche in the food market. The main idea of the bakery of the “Ķelmēni” organic farm is to produce rye bread by traditional methods and to be a good practice example of how to combine quality and environmentally friendly initiatives, as well as, to promote healthy eating habits.
Farm Description The “Ķelmēni” farm was founded on the 1st June 1995, some years after the collapse of the Soviet collective farm system. Today the farm, being one of the two organic bread producers in Latvia, employs 30 workers and produces approximately 2 tons of bread per day. The company has agreements with other organic farms of the district to supply rye grown by biodynamic methods. Ķelmēni buys wheat flour, yeast and other raw material from five different companies in Latvia. However, the “Ķelmēni” farm itself managing 800 ha of land and also grows rye in area of 200 ha within an organic farming system. 1/4
Ķelmēni bakery Image Title
Start Point 1988- the farm “Ķelmēni started its activities in agriculture. Farm description Start point/Challange Successful elements Output/Effects
1989- milk production was chosen as farm profile. The farm had 120 ha arable land and 17 cows. 1995- owner Juris Paulovics establishes the Ķelmēni Bakery. ķelmēni is the only bakery in Latvia, where bread is produced of organic grain. Since the beginning, the bakery uses traditional technologies (for example, natural leavens or wild yeasts) that were in use a thousand years ago and have been handed over generation after generation. The dough is prepared in wooden tubs through natural fermentation processes performed by bacteria found in the flour. The fermentation process takes much longer than in conventional bakeries. Different bacteria, as well as other factors — the flour/water ratio, the presence or absence of salt, the fermentation temperature — all affect the amounts and kinds of acids formed, as well as, the quality of the bread.
Challenge Today, the farm, as one of the two organic bread producers in Latvia, employs 31 workers and produces approximately 2.5 tons of bread per day. As an organic producer, the farm has to comply with rigid rules of the EU and the National Certification, as well as, that of the ecoproducers of Latvia. Each rye loaf baked at Ķelmēni bears the national organic label LATVIJAS EKOPRODUKTS (Latvia Ecoproduct), depicting a fourleaf clover threaded through a horseshoe.
RECALL! Open your eyes, your ears and run your mind!
“Ķelmēni” supply their products to local shops in the neighboring districts and cooperate with supermarket chains and a specialized ecoproduct shop “Ekovirtuve” (Ecokitchen) in Riga. Due to optimization of production and improved planning, in the current period the bakery has been keeping its prices nearly constant, irrespective of the rising costs of production.
Ķelmēni bakery Success elements
Farm description Start point/Challange Successful elements Output/Effects
At the sales level: The growth of the organic farming sector goes hand in hand with consumers' interest in healthy products. However, organic food tends to be more expensive than the conventional food. Besides, the total capacity of the few organic producers is too low, and small-scale production of a quality product has to compete with industrial-scale supply from conventional producers. Only few organic farmers and producers, like Ķelmēni, have made it to the large supermarkets. At the product level: People who use Ķelmēni made bread know what they wish. At the farm level: It is advantage for Ķelmēni, is fact, that the farm has two profiles- cereal production and bakery: both sustain each other. At the advertising level: The farm produces organic grains, and it has a bakery at which tasty rye bread, wheat-rye bread and croutons for bread yoghurt are produced. Bread can be purchased on site.
STRENGTHS: Producing of good quality product Their niche in supermarket net Combining organic methods of farming and traditional baking technologies Activity at local business community and native region EXERCISES - DIRECT DISTRIBUTION AT THE COMPANY – 1. Why do you distribute at the company? – I lose little time in respect to setting up and displaying products O – So that I can do other things at the same time O – I profit more from my products O – For contact with the customer O – The prices better represent my product O – For other reasons O Explain? ...................................................................................... 2.Where does direct distribution at the company fit in to your method of commercialization? – Less than 20% of total sales O – From 20 to 50% O – More than 50% O 3.Have you equipped any locales specifically for direct distribution? – Yes O – No O 4.At the heart of your company, who takes care of direct distribution? – Mostly the chief of the exploitation O – Mostly his or her spouse O O – Both evenly 5. Do your sales increase? Why? – A real store has been set up O – Effective advertisement O – Consumers want to know where their products come from O – I have amassed a solid clientele O – Other reason O Describe? ...........................................................................................
Ķelmēni bakery Output/Effects
Ķelmēnu rudzu rupjā
Start point/Challange Successful elements Output/Effects Ķelmēnu kviešu saldskābā*
Ķelmēni black bread Content: rye flour, sugar, malt, caraway-seeds, salt. 100 g food value: protein 8,4 g, carbohydrates 59,9 g, fat 1,5 g. 100 g energy value: 262 kcal One loaf = 1 kg The soursweet bread from rye and wheat. This product is not organic, as in Latvia wheat and other needed ingredients are not produced by biodynamic methods. Content: wheat floor 60,3%, rye flour 20,3%, sugar, malt, caraway-seeds, salt. 100 g food value: protein 8,8 g, carbohydrates 60,4 g, fat 1,1 g. 100 g energy value: 1202 kJ / 287 kcal
Content: wheat flour, sugar, dry milk, crop fat, barm, salt. 100 g food value: protein 9,0 g, carbohydrate 59,0 g, fat 3,0 g. 100 g energy value: 257 kcal Content: wheat flour 52,2%, wheat grain 6,1%, wheat bran 4,3%, sugar, dry milk, salt, crop fat, barm. 100 g food value: protein 9,5 g, carbohydrate 59,0 g, fat 3,0 g. 100 g energy value: 1009 kJ / 241 kcal CASE STUDY END…
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Discussion Questions/Remarks How the owner foresees/plans the future development of the company? What kind of products and services could be developed?
Further investigations http://www.dabasdobe.lv/bode/82_87 http://www.ekoprodukti.lv/?id=167&b=208&b_dnoz=138 http://www.karotite.lv
C o n c l u s i o n s Quality, quality, quality: Apart from being certified with the LATVIJAS EKOPRODUKTS, the bakery has developed its own “audit trail” of internal control, from one worker and operation to another during the production process in order to maintain its good name among consumers. Operations are registered, samples are kept, and the label of each loaf bears the signature of the baker. Cooperation: The company has agreements with other organic farms of the district to supply rye grown by biodynamic methods. Ķelmēni buys wheat flour, yeast and other raw material from five different companies in Latvia. 4/4