26-05-2014, 02:31 PM
Haleeb foods Limited
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Company History
Chaudhry Dairies limited was incorporated in 1984 as a Public limited Company. The head office is situated at 135 Ferozepur Road; Lahore while the plant is situated at 62 km Lahore-Multan Road, Bhai Pharu. Commercial production started in 1986 & the company reached its breakeven in the year 1992. In the 1993 milk powder was introduced in the market in the bulk form.
Haleeb Foods Limited is one of the fastest growing packaged food companies in Pakistan with an annual turn over rate of 7.2 Billion. It was incorporated on 9th April 1984, while it’s started its commercial production in July 1987. Within a short span of just 2 decades, the company is operating in 5 businesses segments; UHT milk, Cream, Juices, Powdered milk & Butter oil. Haleeb Foods has achieved undisputed leadership in the liquid packaged milk category with a market share of more then 56%. The company has a very strong portfolio consisting of leading National / International Brands; Haleeb, Candia, Dairy Queen, N’rish, Skimz & Tropico.
Haleeb Foods is well known for it “first mover” initiatives in product & packaging innovations. The company believes in using leading edge processing & packaging technologies to meet consumer’s expectation of hygienic & high quality food products. Haleeb Foods employs the broadest range of packaging formats; Tetra Brick, Fino, Classic & Foods grade plastic bottles for the convenience of consumer. The company has one of the largest nationwide distribution networks with the help of 1100 distributors/ dealers delivering high quality products even in remote areas of Pakistan. Moreover, it has tapped opportunities in export markets including Korea, Hong Kong, Bangladesh, Afghanistan & the central Asian states.
World milk production
Two thirds of total world milk is produced by Brazil, India, Pakistan, Poland, Russian Federation, USA, and 15 EU member states. Pakistan in the fourth largest milk producer in the world.
Milk production in Pakistan
Pakistan is the fourth largest milk producer in the world. About a third of the total milk produced by the rural families’ flows out to urban consumers and processing industries. In urban areas milk is available to common consumers in two ways: loose / unprocessed milk and packed/ processed milk. 1 Dairy companies such as Nestle and Haleeb are the main part of milk marketing structure. Haleeb Foods Limited (HFL) as local company, which developed from a small structure.
Livestock sector in Pakistan contributes almost 50 percent to the value addition in the agriculture sector, and almost 11 percent to GDP, which is higher than the contribution made by the crop sector (47.4% in agriculture and 10.3% in GDP). The role of livestock sector in the rural economy is very crucial as 30-35 million rural population of the country is engaged in this sector for its livelihood. Within the livestock sector, milk is the largest and the single most important commodity. Pakistan also has an industrial production capacity of approximately 47.5 million liters per year of ice cream.
Pakistan's dairy industry is plagued by a number of problems which include lack of commercial dairy farms, low productivity due to poor nutrition, a weak infrastructure, lack of financial facilities, and the ready availability of raw milk to a poor and uneducated population. Although Pakistan was ranked fourth among the five leading milk producing countries in the world, with an estimated 24 million animals having produced closely to 28 million tons of milk in year 2003 and over 31 million tons during 2005-06 as the 5th largest producer of milk in the world, its yield per animal is only one-fifth of that of Western Europe.
Margin
As mentioned earlier, the HFL were paying Rs. 14-22 according to percentage of SNF in milk per litre to the farmers and the commission agent who collects milk on the behalf of the HFL was paid Rs. 1 per litre. The company packed UHT milk is being sold in the market at Rs. 70 per litre. Now the differential paid by the consumer as compared to what accrues to farmers is Rs 32-34. Not all of this goes to the HFL. According to what was gathered from the discussions with the field staff of the company was that the company was paying Rs. 1 per litre to the collection agents and Rs. 7 per Km for transportation from the collection centre to PHE to a Hilux Van owner and Rs. 11 to Mazda Van owner which has comparatively more capacity that a Hilux Van. The HFL officials also told that the company was paying Rs. 16 per Km to big vehicle owners to transport milk from PHE to the processing plant as transportation cost. Since the company officials were not forthcoming on the cost issues, it could not be gauged as to how much cost was incurred by company on packaging.