A dairy business that’s increased profitability by nearly 300%, and has cornered an added value milk, butter and ice cream market in Asia, has won a prestigious new Innovation in Export award, sponsored by OMSCo.
Part of the annual Cream Awards, held at the National Conference Centre, Birmingham, on Thursday evening (15 September), this is the first time an export award has been presented.
The winner, Jersey Dairy, has demonstrated huge success in a tough marketplace, all the time maintaining an average farmer price of 46.4p/litre over the past 12 months, extending exports to Japan and Korea, and also exporting product into Taiwan for the first time.
The island of Jersey supports 21 dairy farms with a combined herd size of just under 3,000 cows, and all but one supplies the Jersey Dairy co-operative, with these producers all shareholders of the business.
Its success in the export market is significant, increasing from a value of £745,000in 2010 when a new processing facility was opened, to £3.7million in 2015.
Just six years ago, 93% of the total production was sold to the local market, with demand for Jersey Dairy products at best static.
The new processing facility – which was an investment worth £12 million – incorporated a modern UHT production line which would manufacture milk and ice cream ranges with extended shelf-life, allowing for ambient storage in the supply chain, both important attributes to compete in global export markets.
'Premium product'
"We’re both honoured and delighted to have won this award," says Bob Jones, marketing director, Jersey Dairy.
"We’re a relatively small business, the home of the world-famous Jersey cow, producing a premium product that is innovative, and returning great value to our shareholders."
The company had been supplying UK multiples with product, notably butter and cream, but was coming under pressure to reduce prices as the price war in the dairy category escalated.
As a matter of urgency, in 2013, they researched and set up meetings with potential buyers in the Far East.
The first success was to supply a retail chain in Hong Kong, resulting in sales in excess of 1 million litres in the first year.
This has been followed by sales of butter to Japan and Korea, and UHT ice cream mix to Myanmar.
And major project in the Far East has commenced with a Chinese food group based in Shanghai.
'Innovative export market'
Jersey Dairy ice cream was launched this summer and has gained distribution in up-market stores in a number of major cities in East China.
In 2017 there are plans to export a whole range of dairy products, including milk, cream and butter.
"The way in which Jersey Dairy has developed an innovative export market, for a whole range of added-value products, is something our industry should be extremely proud of," says OMSCo chairman, Nicholas Saphir.
"They have succeeded in securing a premium price for their milk, enabling farmers to confidently expand knowing they have a market for their increased production.
"They are a fantastic first winner of our award, and we wish them even more success as they develop further ranges of new products in the future."
