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Engro Foods Value Chain Case Study

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by

Tim Gardner

on 26 May 2015

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Transcript of Engro Foods Value Chain Case Study

Introduction
Engro Foods was established in 2005 and started operations in 2006.

The second largest dairy company in Pakistan.

The total turnover of Engro Foods was US$370m in 2013.

Engro has the capacity to process 1.8 million liters of milk/day.

Engro has used technology and an innovative approach to create a strong relationship with its suppliers and customers.


Competition
Traditional raw milk value chain in Pakistan, from cow to consumer.
Consumer Relationships
Electronic Milk Automation Network (EMAN)
Urdu language meaning “transparent and trustworthiness”.
Timely payments to suppliers
Monitoring of efficiency of milk supply
Data collection and record keeping


Logistics Partnership
Input Suppliers
Engro improves yields for its small dairy suppliers by enabling them with improved access to breeds, feeds and vet services.
Provides soft loans in partnership with banks.

Door to door sales - brand ambassadors (emulate the traditional value chain)
Asymmetrically communicates brand value with advertising

Consumers
Engro Dairy Farm
10,000 livestock serving as a source of milk for dairy products.
5% of total milk collected.
Contractual Farmers
300,000 farmers contracted to supply milk to Engro
Small Dairy Farmers
7m total dairy farmers in Pakistan
3-5 cows average.
5 litres per cow.

Village Milk Collection
Dhoodies
Village milk collectors
Cover 15,000 villages over 200,000 sqm
Village Milk Collection Centre
1,800 centres across Pakistan
Average storage capacity 500litres
Contain milk testing facilities
Tim Gardner
Muhammad Aamir
Sanjeeva Gunaratne
Engro Foods Value Chain Case Study
96% of Pakistan milk consumption!
Transportation
360 specialized milk collection vehicles.
Full transcript