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2.3.2. –Trikata KS

Short Schedule Farm description

Farm/Company

Start here/Challenge Successful elements

Place, map location

of

Name: Agricultural Cooperative of Dairy Producers “Trikata KS” Web site: www.kooperativstrikata.lv E-mail:info@kooperativstrikata.lv Country: Latvia Region: Vidzeme City: Trikāta

Output/Effects

Key Words

Why to learn more about Trikata?

Product Type

Cheese

Reference year

2009

Completion date

16.03.2010.

Full production and processing cycle - Dairy production Added value of the product - Distribution channels Partnerships and cooperation - Communication strategies Creating company’s image - Logistics

A dairy farmers’ cooperative established its own cheese factory, enhanced its product development capabilities and was able to meet the sourcing demands of all the largest local supermarket chains. These factors have contributed to the success of the cooperative. It has become one of the fastest growing enterprises in Latvia with a turnover of 20 million Lats (28 million Euros) in 2009. Famous sort of cheese (Russian cheese).

Description of cooperative Agricultural Cooperative of Dairy Producers (ACDP) „Trikata KS” unites the dairy farmers of Vidzeme and Latgale regions. The cooperative aims at representing the farmers’ interests and uniting their resources to improve the farmers' activities and practices. “Trikata KS” initially named “Jaunais piens” (New milk) was established in 2003 uniting 11 dairy farms of various sizes in the Vidzeme region. The main goal of the organization is to offer its members the best price for their dairy products and provide other services at the most competitive price. All the other activities are subordinated to this purpose. Three major activity fields of the organization are: 1. Collecting milk from farms and selling it at the best possible price; 2. Providing the members with deliveries of forage, micro-nutrients, disinfectants and other necessary products; 3. Offering bookkeeping and other services to the members. There were 215 regular members of ACDP „Trikāta KS” in 2009.

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Trikata KS Image Title

Start here! Farm description

“Trikata KS” has been growing rapidly. At the end of 2003, there were 17 members and the volume of milk sales grew up to 1815 tonnes. Milk sales dynamic 2003-2009

Start here/Challenge 120000

Successful elements t (year)

Output/Effects

100090

100000

83424

80000

GLOSSARY

60677

60000

20000 0

Cooperation-

37187

40000 181517

6508 40

5244 61

137

221

215

257

2003

2004

2005

2006

2007

2008

2009

Currently, 257 members from the dairy farms all over Latvia (both, regular and potential members) are actively involved in the running of the organization. „Trikata KS” aims to provide its members with efficient milk collecting services and sales channels. To maintain the high milk quality, analyses of milk samples from the member’s farms are performed on a regular basis The cooperative also offers a range of bookkeeping services.

process of working or acting together, which can be accomplished by both intentional and non-intentional agents.

Geneticbranch of biology that studies heredity and variation in organisms

Challenge

RECALL! Different types of distribution channels!

Since 2007 ACDP “Trikata KS” has been a majority stakeholder of the stock company “Trikatas siers”, which produces cheese and “Trikatas logistika Ltd.”, which manages logistics for the produced goods. Since then ACDP “Trikata KS” has become one of the few companies providing a wide range of dairy products and a full processing cycle – the milk produced in the members’ farms is collected and processed in the factory owned by the cooperative. The milk processing is manual to harmoniously manage and control production. Finally the end-products are delivered to the consumers. In 2008 - awarded with the quality-affirming flag from the Ministry of Agriculture and the Agriculture Market and Promotion Centre. The cooperative has managed to open new export channels for raw milk in Lithuania. In 2008, around 90 thousand tonnes of raw milk were sold abroad. LogisticIn 2009 - the quality requirements for export were fulfilled and the cooperative acquired a corresponding certificate. Investments of about EUR 150 000 have been committed to the product development. In February 2010 - participation in exhibition “Prodexpo’ in Moscow (Russia). In April 2010 - first major export deal - 40 tonnes of cheese delivered to the Russian market.

1. management of materials flow through an organization, from raw materials through to finished goods 2. detailed planning and organization of any large complex operation

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Trikata KS Success elements of marketing strategy Farm description Start here/Challenge Successful elements Output/Effects STRENGTHS 1. Outstanding quality of products guaranteed by high hygiene standards for production and processing of milk. 2. Convenience and regularity in milk collection from the cooperative members and accuracy in mutual financial relationships. 3. Additional services provided to the members: bookkeeping services, deliveries of forage, micro nutrients, disinfectants and other necessary goods for competitive prices etc.

Sales level: Since 2007 “Trikata KS” has been a majority stakeholder of the stock company “Trikatas siers” (Trikata Cheese), which produces cheese and “Trikatas logistika Ltd.”, which manages marketing and product logistics. Product quality: The products are guaranteed to be of exceptional quality. The trademark “Trikata cheese” has been positioned as a high quality product coming from local farms. The start of production of three different types of organic cheese in 2007 was a new page in the success story of “Trikata KS” Farm competitiveness: In 2009 taking into account that innovations and modernization of the production process could raise the competitiveness of the production in EU’s market, the investments were made into production and packaging technologies and a corresponding certificate obtained thus increasing the product export possibilities. Promotion: The cooperative has participated in the exibition ‘Prodexpo’ 2010 in Moscow.

EXERCISES Answer the following questions: 1. Why do you choose to buy Trikata products? 2. Name one reason what makes Trikata stand out among their competitors? 3. Give one recommendation how Trikata could improve customer care strategy? 4. Do you compare Trikata products to others? What qualities do Trikata products have in comparison with others? 5. What would be your suggestions for Trikata to achieve better business results? 6. How would you evaluate the success of Trikata in terms of marketing and what tools would you use for evaluation? 7. What information Trikata needs to know about their clients to develop more efficient customer care strategy? 8. The product life cycle (Please, select only one answer) o o o o

shows how a products sales or profits, depending on the units used, may rise and fall over its life. tells you how long a product will sell for and make a profit. is divided into three stages. shows how profitable a product will be.

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Trikata KS Output/Effects Farm description Start here/Challenge Successful elements Output/Effects

In spite of tough competition, the turnover of Trikata KS has grown from 3.47 million LVL (4.9 million EUR) in 2005 to 20.5 million LVL (28 million EUR) in 2008. The variety of offered products is large: half hard cheese - "Krievijas", "Holandes", ‘Katrina’, ‘Talava’, "Blue", smoked cheese "Beverina", fresh cheeses – 2 kinds pf ‘ Snow balls’ (Goat milk balls), soft cheese - "Sievas prieks" (wife’s joy), "Vīra prieks"(husband’s joy). Trikata KS produces also three sorts of organic cheese - "Krievijas", "Holandes" and "Blue". CASE STUDY ENDS…

...an end is always a new start...

Questions for discussion/Remarks 1. What marketing strategies can be used by the small-scale milk producers (ways to reach potential customers)? 2. Name the types and models of agriculture cooperatives. What are the principles of their activity? What are their benefits? 3. In your opinion, what market research strategies would be the most appropriate for entering foreign markets?

Further information www.kooperativstrikata.lv

 

C o n c l u s i o n s The cooperative leaders and member farmers have been publicly outspoken and utilized various public relations activities in order to raise the profile of the cooperative, the member farms and the milk sector in Latvia generally. The cooperative has gained from these activities, and the Trikata cheese has become well known as the local farmers’ high quality production, made from the best milk in Latvia. Trikata KS is planning to enlarge the production of exclusive cheeses. Innovations in producing process and new technologies could raise the competitiveness of their production in EU market.

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ENG_2.3.2._Case study_Trikata.pdf