ORGANIC DAIRY HAS THE BEST IMAGE

ORGANIC DAIRY: A small, wholly organic dairy is successfully challenging the large ones. Recently, Thise Dairy was judged the Danish food company with the best reputation, on account of its firm adherence to ideological principles

A good story to tell, distinctiveness and outstanding quality, blended with traditions of craftsmanship and good business acumen. These are the ingredients of success, which the small but high profile Danish dairy has achieved in recent years. The dairy’s latest accolade was to be named the Danish food company with the best reputation in the country, by senior executives from the food industry.

Each year the independent industry magazine Food News carries out an extensive image analysis and lists the 15 companies in the food industry which have the best reputation. For the first time, a relatively small and 100% organic company topped the list, in competition with the likes of Carlsberg, Danisco, Arla and Danish Crown – all global and mostly market leading companies.

...Milk from Jersey cattle is far better for curdled milk products because it contains more fat, proteins and minerals...

Quality
“We are naturally proud of the No.1 slot,” says the dairy’s managing director Poul J. Pedersen. “But actually we have not done anything more for it than what we always have done. And that is to make the best dairy products that money can buy.” At first sight, Poul Pedersen appears a modest man, but he is far from being so. He is very conscious of the qualities of his dairy and makes no secret of it, which is one of the reasons why Thise achieved high scores for visibility, openness and communication.

“It all naturally stems from the quality of the ingredients and the way we treat them,” says Poul Pedersen. “Our background is 100% ecology, and we have maintained that principle since our establishment in 1988 – at a time when dairy operation was heading towards mass production to produce as cheaply as possible, and thus as indistinctively as possible. We have never made a secret of the fact that it costs to produce quality, and for that reason we will probably never become an attraction in discount chains.”

Large growth rates
More and more consumers in Denmark are willing to pay for the quality which ecology represents. Turnover in organic foods increased by 12% from 2004 to 2005, an increase which has continued in 2006.

“At Thise Dairy we have seen growth rates of 25% for many years,” says Poul Pedersen. “This year we are predicting 33% growth, which is why next year we will take into use a new expansion of double the size of our dairy.”

More suppliers
When the dairy was about to be closed in 1988 by the almost monopoly-like MD Foods, which later became Arla Foods, a group of farmers contacted Poul Pedersen and encouraged him to buy the dairy. The 12 farmers became the dairy’s first organic co-operative members. The figure now stands at 64, and in 2007 a further 14 farmers will join. The geographical location of the co-operative members has also expanded to cover most of Jutland.

“Naturally it is nice to grow, but growth for growth’s sake is not our aim” says Poul Pedersen. “We only want to grow to the extent that customers want our products. In return we have to be able to deliver both in terms of quantity and quality. When customers express a wish for a special product, we must be ready to deliver it. Quite simply, we make all the things that the large ones cannot or will not make. The reason why we have that flexibility is because we are not larger than we are.” Thise’s business philosophy of being a development dairy has been especially helpful in creating the dairy’s image. Thise was for example the first dairy to separate the milk according to the breed of cattle.

More exports
“Milk is not just milk,” says Poul Pedersen. “Milk from piebald and red cattle is good for standard milk and cheese production, while milk from Jersey cattle is far better for curdled milk products because it contains more fat, proteins and minerals. When the large dairies make curdled milk products using mixed milk, they have to add various additives and stabilizers to achieve the right consistency. Our curdled milk products are the real thing, and consumers can taste it.”

Until now Thise Dairy has been able to sell everything they produce in Denmark – and more besides. And sometimes the dairy simply cannot keep up with the demand for seasonal products. That is one of the reasons why the dairy so far has had a limited focus on exports. This year exports account for about 6% of production. But with the expansion next year, opportunities will be better.

“We look forward to it. Considering that conventional Danish dairy products currently sell amazingly well abroad, imagine what we can achieve when countries abroad spot our extraordinarily fine quality,” says Poul Pedersen.

http://www.thise.dk