INTRODUCTIONINTRODUCTION

MÁTÉSZALKA PLANTMÁTÉSZALKA PLANT

20042004.09.18.09.18 Korcsok György

SHORT HISTORICAL OVERVIEW

• 1951 Date of foundation• 1975 Start the milk powder production• 1979-98 Expand the product portfolio• 1999 Date of Nutricia acquisition

• Milk processed at the time of acquisition: 160.000 L /day• Product portfolio: Túró Rudi, UHT products,

Condensed milk, Milk powder• Number of people employed at the time of acquisition: 275

• 2001 Stop the coffee cream productionUHT line relocation to DebrecenIncrease the TR line capacity

New owner: Friesland Coberco Dairy Food• 2002 New section of the Turó Rudi production hall was finshed

ORGANOGRAM

Pe rso na l a ssista ntT ör z sök E míl ia

Túró Rud i d e p .

M ilk Po wd e r d e p .

Prod uc tion le a d e rB lau Györ gy

A d m in

M a te ria l Sto re ho use

A d m in le a d e rF ar kasné S z ond i A nit a

M e c h.+Ele c tric De p .

Ene rg y d e p .

Te c hnic a l le a d e rT ót h J óz sef

M ic ro b io log y la b .

Physic a l + C he m ic a l la b.

La b le a d e rKat ona J ánosné

Te c hno log istGanyuné S z i lágyi Á gnes

Hyg ie nic sT ar ek M ohamed

Plant directorS z abovik T ib or

TOTAL EMPLOYEES: 243

MAJOR PRODUCTS

1. Túró Rudi 33 SKU’S Nature Túró Rudi Flavoured Túró Rudi Cocoa Túró Rudi

2. Milk Powders 6 SKU’S

SMP WMP

3. Condensed Milk 5 SKU’S In tube In barrel

MILK SUPPLIES

2001. Milk supplies

2%4%

52%

42% Túró Rudi

Milk powder

Sweet.CondensedmilkUHT products

Total milk supplies in 2001: 78.901 thousand litres

2002. Milk supplies4%

57%

39%0%

Túró Rudi

Milk powder

Sweet.CondensedmilkUHT products

Total milk supplies in 2002 : 74.495 thousand litres

Milk supplies in the Budget 2003 ( data in thousand liters):

•Túró Rudi line: 33.775 th litres

•Milk powder & Condensed Milk line: 28.913 th litres

•TOTAL PLANNED MILK SUPPLIES: 62.688 th litres

• Ingredients

Curd

Chocolate coater

Sugar

Butter

Corn starch

Citric aroma

K-sorbate

• Name : Túró Rudi• Type : Dairy Snack• Weight : 23g, 30g, 51g• Variants : Nature Rudi

Flavoured Rudi Cocoa Rudi

• Storage : 0-10°C• Shelf life : 18 days

Properties of fillingD.M. content 52-56 %Fat content 9-10 %Acidity 4.8-4.9 pH

SPECIAL PRODUCT: TÚRÓ RUDI

• 1954 Idea of new product was born (practice in Moscow, Túró Eskimo, Mandeville Rudolf)

• 1966 First Túró Rudi production started somewhere in Budapest• 1969 After a short period Túró Rudi production moved to Mátészalka.

Production : 3-4 000 pcs/dayShelf life : 2-3 days.

• 1976 Modification of the line. • 1978 Production : 70 000 pcs/day• 1979 New plant is handed over in Mátészalka.• 1981 Production : 175 000 pcs/day• 1984 Shelf life : 3-5 days.• Production : 260 000 pcs/day• 1985 New competitor: Kaposvári Dairy Company - Marcali plant, it was

bought in 1999 by Danone

BRIEF HISTORY OF THE TÚRÓ RUDI (1)

• 1989 Increased requirements: hygiene and raw milk quality.• Shelf life : 7 days.• 1993 Purchasing Hoyer line. 60 cm 18 rows.• Cavanna 07-es wrapping machines• Cavanna 11 wrapping machines for Double Rudi• Shelf life : 18 days.• 1997 Coming of Fruit Rudi in 4 flavour.• 1999 Acquisition of Szabolcstej Rt by Nutricia.• 2000 Modifications in line 20 rows (Capacity extending).

Coming of Magnum Rudi (51g) on 18 rows.Using of Modified starch. Step of pressing is removed.New competitor : SOLE

• 2001 Capacity extension project started (New line, new building, etc.)• 2002 New TR production hall was finished. (Quality improvement)

BRIEF HISTORY OF THE TÚRÓ RUDI (2)

PRODUCTION VOLUME OF TÚRÓ RUDI

0

1000

2000

3000

4000

5000

6000

7000

8000

Túró

Rud

i (To

ns)

New competitor: Danone

New competitor: Sole

Development of the market share in Hungary 2003

Competitor: Others

1%

Competitor: Sole11%

Competitor: Danone

18%

Own Product: Private Labels

3%

Own Product: Milli15%

Own Product: Pöttyös

52%

PROBLEMS & TASKS IN 2003

Main problems: • High core temperature at the end of the old TR line

• Cracks of the Rudi

• Lack of CIP system

• EU - number is suspended

Main tasks:finish the Turó Rudi investment in time, in a planned quality, within the modified budget

acquire the EU number – possibility to export

• Reconstruction of the old TR unit

• Reconstruction of the milk reception line

• Reconstruction of the material stores

• Establishing a new chemical store

• Improve the technological conditions of the condensed milk production

• Maintain the milk powder production (air filter chamber, twin concentrate tanks , etc )

• Renew the road system of the unit

• Forming of the reception of the returns

• Improve the treatment of the waste water

PLANT INVESTMENTS IN 2003

Extend the shelvelife of the normal Turó Rudi to 25 days

Finalise the technology of the export Turó Rudi Improve the milk powder production Improve the data collection system Solve the storing of waste materials Separate the TR production zones

Further tasks of 2003

Most important tasks of 2004

• Refurbishment of the line B, to correspond to the standard of the A line

• Diversification of the production on the home market

• Development and start up of the export Turó Rudi• Refurbishment of the condensed milk production • Trials on the sour whey powdering

TR Quality Improvement

Consumer's Mould Complains 2002-2003

0

2

4

6

8

10

12

14

Months

Num

ber

of c

ompl

ains

(pcs

) Curd Production in Open cheese vats

20032002

Actual month

Curd Production in closed cheese tanks