Translations

Ecuatorian cheese maker Floralp, develops win win relations with its local suppliers

5. Fair Operating Practices

Responsible purchasing

Sector Food-processing

Year 2012

Country Ecuador

Transmitter

Context

Floralp is a family company initiated 1964 by Oskar Purtschert, a Swiss cheese producer who moved to South America in 1949. By the 80’s the second generation took over with focusing development with a strategic plan including quality management system and good governance practices. In that context, quality milk supplier’s collaboration necessity raised as a main strategy in a win-win approach.

Objectives

- Make negotiation not focusing only on Price
- Reach sustained milk production growth necessary to company plans
- Reach suppliers satisfaction to own a business which improves their life style

APPROACH

Floralp’s sustainable development focuses on different projects managed in partnership with local suppliers and small producers associations.

- Productivity and milk production quality improvement

- Market access for small producers by Floralp’s orders, thanks to established long term relations with their association

- Systematic alliances with milk producers for new business development which support Floralp

To reach this, internal resources were used, and then someone took charge of the different projects running, with an innovation and profitability approach. Some successful projects were then integrated to internal processes. To achieve profitability and productivity, co-financing with external structures was set.

CONTRIBUTION TO COMPANY PERFORMANCE

- Floralp turnover: 20% anual growth

- 4% maintained profitability level despite crisis

- Access to new markets

- Access to new financing sources (obligations’ emissions)

Benefits

- 16 local communities fostered by Floralp with a +150% life style increase and conservation of their water and wood resources

- Participation to a national inclusive business policy for local population development.