Teagasc National Goat Conference
Portlaoise
Wednesday 21st April 2016
Delamere Dairy
and the market for Goats
Milk based dairy products
Our Business
Founded 31 years ago by Roger and Liz Sutton
- with 3 goats wanting to farm
Turnover 2015 - £20 million
Speciality Dairy and Dairy Alternatives
Branded and Private Label- UK and Export
Exporting (Shanghai, Belgium offices)
MD Ed Salt 12 years in the business
Experienced management team – 22 employees
Dedicated goats milk supply
18 longstanding co-packing partners in UK & Europe
Some of Our Products
Fresh Goats’ Milk
Goats’ Cheese
Fresh Goats’ Butter
UHT Milk
Fresh Goats’ Yogurts
Sterilised Milk
Dairy Alternatives
Pet Milks
Our Business Model
•
1992 we started to outsource our Production capacity
•
2007 we even sold our own herd of 1500 goats
•
Now 18 longstanding co-packing partners in UK & Europe
•
7 dedicated contacted UK milking goat herds approx 10,000 goats
Goats milk based – milk supplied by Delamere Dairy from dedicated
contracted milk supply
Cows milk based and Plant based drinks supplied as finished products
ADVANTAGES
•
Flexibility, speed to market
•
No investment in stainless steel
DISADVANTAGES
•
Give up manufacturers margin
Our Goats Milk Supply
What we look for in a good supplier
•
Ability to develop well invested enterprise min. 800 milkers
•
Geographical location
•
Must adhere to Goat Farm Assurance and Welfare (Red
Tractor)
•
Good husbandry essential
•
Must engage with Delamere Dairy and our supplier group
- incl controlled, agreed growth plan
•
Continuous improvement and efficiencies
Focus on…UK Goat Dairy Trade
UK Goat Dairy - A Few Basics…
Milk produced in the UK (litres)
Goats
%
Cows
33 million
0.2
14.3 billion
(World: 636 bn)
Cheese produced in the UK
1600 tonnes
4.4
Size of UK Cheese Market
? UK prod plus import *
360,000 tonnes
417,871 tonnes
*Mainly French- produce 450m litres goats milk annually
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•
•
•
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Other goats milk based products include yogurt, butter, ice cream and pet milk
100,000 goats in UK. Approx 60,000 in 50 commercial herds (all housed)
Reducing reliance in imported raw milk and curd. Supply and Demand broadly in line – easier
to control small supply base
£70m Approx retail value
Current growth in UK market <5%
Reasons for purchase:
Health
Taste / Choice
Milk / Yogurt
Cheese / Butter
Focus on…UK Goat Dairy Trade
UK Drinking Milk
Litres
Value
Cows
5.3 billion
£3 billion
Milk Alternatives & Health Benefits
141 million
£177 million
Goats
17 million
£26 million
Liquid Goats Milk suppliers to UK market
• St Helens Farm (Kavli) Branded to Tesco, Sainsburys
• H Walker & Son ( Goats milk trading) Waitrose Private Label
• Delamere Dairy M&S Private Label, Branded to rest of UK market
Other goat farm supplier groups (Cheese)
• Lubborn Creamery (Lactalis McLelland)
• Cornish Country Larder (Arla)
• Abergavenny Fine Foods
Opportunities / Threats
Grow UK sales channels – loyal customer base
Export – barriers being overcome
Scale production up + investment from larger dairy companies. Ability to
control milk supply
Product innovation – anything made with cows milk can be goats milk
Health of the Nation – Natural (digestible etc) – Jamie Oliver super food
Meat – another income stream for the farmer
Animal health issues could decimate small supply base
Food scare interrupting small size of UK trade
Competition from imported brands / other milk alternatives
Ethical / Factory farming discussion – housed goats etc.
Oversupply of milk
Any Questions
?