Milk for five production sites
The supply chain of a company comprises partners, activities and processes which are involved in all added value activities and the delivery of products. The internal supply chain management is based on a very detailed structure which includes the following key areas.
FOCUS ON: SOURCING OF MILK AND AGRICULTURAL RAW MATERIALS
Dairy raw materials such as raw milk or cream are by volume our most important agricultural raw materials. Within our supply chain, we source these dairy raw materials from our member companies and contract suppliers to the Uelzena Group. The raw milk is produced in agricultural businesses; most of them are located within a 150 kilometer radius around our sites.
The conventional sugar for our products is not sourced from overseas. We use only beet sugar from domestic sugar refineries. Even the sugar beets are not imported but grown by farmers from the region. Alternatively, we source our tropical raw materials such as cocoa from refinement plants located in Europe. These companies sometimes buy the cocoa beans from distributors who organize the import. However, they also buy directly from growing countries, predominantly in West Africa, from so called cooperatives. Apart from cocoa, we also source coffee, tea and spices from overseas.
We use agricultural raw materials and semi-finished goods to produce milk powder, butter and butterfats or we refine them in a multi-stage process into finished goods such as instant beverages.
FOCUS ON: UPSTREAM AND DOWNSTREAM ADDED VALUE STAGES
Upstream added value activities: We procure various agricultural raw materials from our suppliers. The majority of the raw milk comes from our member dairies. Cocoa, sugar and coffee are also required for our products. These raw materials have sometimes already been processed. We also need packaging materials.
We have our own added value activities in four plants and one cooperative venture: We use milk raw materials to produce milk ingredients for further commercial and industrial processing as well as for our own needs. Furthermore, we produce butter and butterfat for use by the consumer. We also refine produced or purchased ingredients and raw materials such as cocoa, coffee and sugar. In a multi-stage production process we manufacture finished products and pack them into large or small units.
Downstream added value activities: Our products are further processed by food producers, marketed by the customer as finished goods (private label) or sold by retailers as branded products to the final consumer.