Interviews

The Dairy Giant: Mlekpol’s export destinations

Wednesday, 14 August, 2024 Food From Poland 41/2023
As one of Poland’s dairy titans, Mlekpol’s reach spans over 100 countries worldwide. We talk with Małgorzata Cebelińska, Vice President of the Management Board of SM Mlekpol about export to dynamic markets of Asia and Africa, unique strategies, and unwavering commitment to quality that define Polish dairy manufacturer.
SM Mlekpol in Grajewo is one of the main dairy producers in Poland. However, 30% of your output reaches foreign markets. In which countries can your products be found?

The products of SM Mlekpol reach more than 100 countries of the world, and our main recipients are the European Union states. Our highest turnover today is achieved with Germany, the Netherlands, Lithuania, Latvia, Bulgaria, Italy, and Greece. The scale of production and broadness of our offer allow Mlekpol to develop exports also to the countries of Africa and the Far East. Our products are present in such countries as Libya, Morocco, China, Vietnam, Japan, South Korea, Cambodia, Indonesia, Malaysia, and the Philippines. Another important direction of export is the Middle East – Israel, Iraq, Saudi Arabia, the United Arab Emirates, and Qatar.
 
Which directions are you currently developing?

Due to the distance and common legal conditions, the European Union countries are the natural recipients of Mlekpol’s products. The cooperative collaborates, to a varied extent, with almost all states of the Community. The most intense trade exchange is conducted with such countries as Lithuania, Latvia, Estonia, Bulgaria, Greece, Romania, Germany, and Italy. Recently, an increasing amount of the Cooperative’s goods reaches Balkan countries, such as Serbia, Croatia, or Bosnia and Herzegovina. Countries whose own milk production is insufficient are another major direction of exports. Therefore, Mlekpol continues to develop its exports to the countries of Africa, Middle East, South-East Asia, as well as Latin America, mainly Mexico, Chile, and the Dominican Republic.

What makes your export offer stand out? Does it differ depending on the country?

Mlekpol’s export offer means, above all, products with long shelf lives, appreciated by foreign clients and consumers for their high and repeatable quality as well as Polish origin. They include cheese, butter, UHT milk, cream cheese and processed cheese. To meet the expectations of foreign partners, Mlekpol has created new UHT milk brands (Milcasa and Happy Barn), standing out with their image and communication on store shelves in various countries around the world. Products intended for the B2B sector are powdered goods, such as skimmed and whole milk, whey, WPC, MPC, permeate, as well as fat-filled milk and whey. Construction of a modern Powder Production Plant in Mrągowo, equipped with 3 drying towers, has broadened the offer of such products, most of which reach foreign recipients. With its production scale and experience, Mlekpol adapts efficiently to specific requirements of individual countries. This often entails the creation of a completely new product marked in the recipient’s language.

Which products are currently trending? How have the customer preferences changed in the dairy category? How does the consumption of milk and dairy products look like in Poland, and how does it look like in the countries to which you export?

The most popular product has always been liquid milk as well as fresh dairy goods, consumed every day by billions of people worldwide. The annual per capita consumption of milk and dairy products is higher in developed countries than in developing ones, yet this gap is narrowing year by year. Due to population growth, increasing consumption is recorded in African countries, in India, as well as in East and South-East Asia, particularly in China, Indonesia and Vietnam. In Poland, an upward trend in consumption of milk and dairy products has been maintained, yet its intensity is getting weaker. The consumption is higher in comparison with such countries as Slovakia, Hungary, Bulgaria, but still much lower than in the Netherlands, Germany, Finland, Sweden, or the UK. A product gaining popularity in almost all countries of the world is Mozzarella cheese, used, among other things, to produce, loved by everyone, pizza. Most fermented products, such as yoghurt, are sold in the drinking form, in practical and convenient “on the go” packages.

Quality plays a special role in the dairy product segment. How do you care about the safety and quality of your products? How do you verify your suppliers?

Mlekpol’s products are made exclusively of milk from our own suppliers who are members of the Cooperative. This allows Mlekpol to establish and enforce strict raw material quality standards, often more stringent than the requirements provided for in the regulations of the EU law. The quality of the received raw material is verified through testing of more than a dozen parameters, performed by internal as well as external and independent laboratories. Furthermore, the Cooperative meets international standards, such as the International Food Standard (IFS), HACCP in accordance with the Codex Alimentarius, or those resulting from evaluation systems, including Ecovadis, Sedex, and the SMETA social standard. Besides, Mlekpol offers its customers selected products compliant with the requirements of Islamic diet (halal) and with the rules of the Jewish law (kosher).

The high standard is also ensured by the technologies applied in production. How does the Mlekpol production line look like in this regard?

Mlekpol is comprised by 14 highly specialized processing plants operating several hundred production lines. Every year sees investments connected with machinery modernization as well as digitization and automation of processes. They are intended to increase the efficiency and effectiveness of production, to reduce the work inconvenience, and to cut the costs. Individual plants are characterized by narrow specialization in production of specific goods. The production in Grajewo, the main seat of Mlekpol, includes UHT milk, butter, curd, cottage cheese, and powdered milk. Mrągowo, on the other hand, has the largest cheesemaking line in Poland, with a daily capacity of 150 tons. Next to the cheesemaking plant, a modern Powdered Dairy Goods Production Plant has been built as one of Europe’s largest establishments of such type, processing 3 million litres of raw material (milk, whey) per day.

Sustainable development is a major aspect of operation on which producers on the FMCG market are focused. How do you care for the environment and the future of our planet?

Mlekpol has always aimed to care for the environment and natural resources. Therefore, the Cooperative has developed a strategy efficiently restricting the company’s negative climate impact. First, the use of bituminous coal was eliminated in favour of natural gas or LNG. Secondly, Mlekpol produces its own electric power from low-emission fuels, increasing its energy security and independence. Between 2020 and 2022, two cogeneration heat and power plants were launched at the Mrągowo and Zambrów plants and are currently Europe’s most modern energy centres of industrial plants. The third area of the Cooperative’s energy policy is the production of electric power from renewable sources. This year, construction of the first biogas plant will be finished as part of modernization of the factory sewage treatment facility in Grajewo. Another aspect is the implementation of technologies that enable saving and recovery of energy from processes. Of course, the Cooperative also focuses on other aspects in the area of sustainable development, e.g. through introducing more ecological product packages to the market. These include tethered-cap cartons of UHT products.

What is the direction of global trends in the dairy category?

Care for health and good mental wellbeing is a strong trend among consumers and it is still developing. People are increasing their awareness and are paying attention to the composition and origin of products. This is a very positive phenomenon, since Mlekpol’s mission has always been production of natural and safe dairy products representing high quality. Interestingly, there is a growing interest among consumers in products made with respect to tradition, so called comfort food, but also satisfying modern needs and functionality, such as the so called immuno-food (with vitamin or probiotic additives). Furthermore, different snack and dessert products, such as yoghurts, desserts and puddings, are trending now. Responding to this trend, Mlekpol has introduced an innovative dessert with buttermilk in three original flavours, as well as crème fraiche cream dips inspired by French cuisine. Over the recent years, being the centre of attention has become a characteristic phenomenon, especially with the young generation. Consumers wish to stand out and emphasize their individuality, including through things they eat on an everyday basis. Mlekpol keeps meeting such needs, caring not only for quality and innovativeness but also for the exceptional taste of our products.

How do Mlekpol’s plans for the upcoming years look like?

The Cooperative’s continued objective is to care for its resource pool and to develop it. Currently, Mlekpol is processing 17% of Polish milk, Poland still has huge potential in this regard, and it is worth taking advantage of it. The company still intends to develop its product portfolio and to diversify the sales directions. This regards modernization of production lines, automation and implementation of modern technologies, as well as optimization of production processes. For instance, we are now carrying out two innovative projects: one is connected with the production of long-life UHT milk, similar to fresh milk in terms of organoleptic properties, and the other is related to butter with improved nutritional characteristics and health-promoting values (vitamins D3, K2, MFGM). This is a response to the changing consumer needs we included in our long-term development plans.

Thank you
Tomasz Pańczyk, Editor-in-Chief




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