Danone operates across four divisions: medical nutrition, baby nutrition, dairy, and waters. It has annual sales of 17 billion euros and holds the number one global position in dairy and medical nutrition in Europe. The document outlines Danone's strategy in dairy, which includes investing heavily in research and development, pursuing a "double project" approach to benefit social and environmental wellbeing, and achieving healthy growth. It also details Danone's activities in Ukraine, such as working with cooperatives of small dairy farmers and constructing demonstration farms to promote more sustainable agricultural practices.
ICT role in 21st century education and its challenges
Danone in the world by D.Marchetti
1. DANONE IN THE WORLD
4 Divisions MEDICAL NUTRITION
BABY NUTRICION
DAIRY
WATERS
2. DANONE IN THE WORLD
MEDICAL NUTRITION
4 Divisions BABY NUTRICION
DAIRY
WATERS
17 Billion € – sales in 2010
3. PRODUCTS BY BUSINESS LINE
Dairy products - No 1 worldwide Baby nutrition - № 2 worldwide
Waters - №2 worldwide Medical nutrition - No 1 in Europe
4. DANONE GLOBAL STRATEGY IN DAIRY
1) Live to eat vs Eat to live
↑
220 million EUR are invested into R+D every year.
a) Danone Research has a staff of 1,200 including 600 scientists and 450
specialized developers;
b) Partnerships with over 200 scientific institutes around the world;
c) 100% of Danone researches are focused on healthy and nutritional qualities of
products
2) “Double Project”
A business can only survive if it improves social wellbeing of people around it.
(Antoine Riboud, Marseille 1972)
a) Social Farming + Business
b) Environment
3) Healthy growth
5. DANONE GLOBAL STRATEGY IN DAIRY
1) Live to eat vs Eat to live
↑
220 million EUR are invested into R+D every year.
a) Danone Research has a staff of 1,200 including 600 scientists and 450
specialized developers;
b) Partnerships with over 200 scientific institutes around the world;
c) 100% of Danone researches are focused on healthy and nutritional qualities of
products
2) “Double Project”
A business can only survive if it improves social wellbeing of people around it.
(Antoine Riboud, Marseille 1972)
a) Social Farming + Business
b) Environment
3) Healthy growth
6. DANONE GLOBAL STRATEGY IN DAIRY
1) Live to eat vs Eat to live
↑
220 million EUR are invested into R+D every year.
a) Danone Research has a staff of 1,200 including 600 scientists and 450
specialized developers;
b) Partnerships with over 200 scientific institutes around the world;
c) 100% of Danone researches are focused on healthy and nutritional qualities of
products
2) “Double Project”
A business can only survive if it improves social wellbeing of people around it.
(Antoine Riboud, Marseille 1972)
a) Social Farming + Business
b) Environment
3) Healthy growth
9. Results
Milk prise (farms) = +63%, but dairy products only 35% on average.
Cost for raw milk price for processors without subsidies – increase much
higher!
Industry is suffering and may disappear.
10. DANONE MILK STRATEGY 3-TIER STRATEGY
Individuals - 80% Transformation individual
into family farms through
Coops + Demo Farms
Farm Development
Industrial Farms – Program + loans
16%
Large Farms (1000 Vertical Integration
and more cows) - 4% through partnerships
13. After 1 year initial results promising
25 COOPS
31,1 mln. UAH invested (incl. DemoFarm)
2 218 individuals (households families, coops members)
40% increase income for individuals
30% of Kherson Milk coming from COOPS
Services supplied
• milk collection and cooling, delivering of drinking water,
• cows insemination & veterinary services,
• forage production (embaling of hay and straw, silage production),
• support in realization of other products from individuals,
• wholesale buying of consumer good for coops members by lower prices
trainings and other.
14. FROM INDIVIDUAL FARMING TO
SMALL SUSTAINABLE FARMING
Step 1
Individuals Service
Micro farmers Coops
Project: Milk Communities in Ukraine Project: DemoFarm
Cost: 1M€ + 1.6 million (USA) Cost: 0.5 M€
Project objectives: to show 5-year
vision to coops
To enroll future partners (banks,
government, farmers, coops)
15. FROM INDIVIDUAL FARMING TO
SMALL SUSTAINABLE FARMING
1.6 million (USA)
200 heifers purchase and delivered to coops members
Calves has to be given for free to other coops members
as a gift
UKRAINE
16. FROM INDIVIDUAL FARMING TO
SMALL SUSTAINABLE FARMING
Step 1 Step 2 Step 3
Individuals Service Service + Farms
Micro farmers Coops Production Medium or
Coops + Small
Micro Farmers
Project: Milk Communities in Ukraine Project: DemoFarm
Cost: 1M€ + 1.6 million USD (USA) Cost: 1.5 M€
Project objectives: to show 5-year
vision to coops
To enroll future partners (banks,
government, farmers, coops)
17. DemoFarm mechanism
DemoFarm project aims DemoFarm services:
to create learning • Farming knowledge &
opportunity to coop practice
members who is willing to • Feeding based on
start family farm
Coops balanced rations
• In-depth vet & genetic
services
Milk
Farm
Farmer School is Farmer
located/ integrated at
modern milk farm (120
School
small
cows) with model demo
farm
visualization at 3 private
family farms
18. Demo Farm is under construction
Sep •
Zero cycle (foundation)
Oct •
Frame construction
Nov •
Construction of roofing
Dec •
Installation of sections
for livestock keeping and
internal utility networks
Jan • Mounting of equipment
19. Mega Farm Projects
JV Partnership 3 way Partnership
- JV gives Danone - Greenfield and
- Danone in co-
(with control stake) Brownfield
operation with the
control over projects.
Bank offers low-rate
production cost of loans in UAH.
milk. - Danone provides
long-term contract
(7-10 years) >> - APR 9-14% vs 17-
- Projects could be partner builds 22% in Market
formed in Portfolio farm >> Danone
and financed together buys cows.
with EBRD and - Over 15 farms will
Government. use the financing.
- 1-2 projects to be
approved in 2011.
- 1-2 projects to be
approved in 2011.
20. CRITERIA
• Availability of • Partner's • Economic
lands for crops: mindset: criteria:
- land size and
quality - skills/competences - total investment per
- enterpreneural spirit animal <8kEuro
- water access
- management & - open book approach
- presence of feed controlling
market - readiness to co-
- immaculate business finance in early
image stage of the project
- acceptance of exit
strategy
22. Overview of overall Impact
3500 cows heads by end of 2012
Increase milk supply by 25 Thsd. T
Attract/Invest 13 Mln. Euros (with loans
and interest rate compensation)
High standards in milk production:
Quality, Safety, Productivity, low costs
Improvement of social wellbeing of rural
people
23. WITH THIS ACTION PLAN WE PLAN TO:
1. Continue our growth
2. Positively impact dairy farmers
3. Support Ukraine’s development in Dairy
(Farming + Processing)
4. Build “Crisis Proof” Business Model