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    Banca dati dei progetti dei PSR

    Machinery Modernization and Marketing Innovation on a Commercial Dairy Farm

    Summary

    S.C. Agroindustriala Pantelimon is a livestock farming company and now one of the most renowned milk producers in the country. With EAFRD support the farm has successfully modernized its technical equipment and innovated its sales methods.

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    Background

    The farm began its activities in 1973 when 400 Holstein in-calf cows were brought in from Denmark. Since then, a focus has been placed on increasing the genetic value of the head stock. This has led to the sale of over 3000 cows of high genetic value to other farms in the country. Each year the farm has been ranked as one of the biggest milk producers in the country.

    Objective

    The main objective of the project was to increase the productivity and profitability of the farm by modernizing its equipment, improving the quality of the fodder and introducing innovative sales techniques.

    Main activities

    In order to achieve the project objective, new machinery was purchased for harvesting and processing the crops grown and to transport the fodder directly to the animals. Five vending machines were also bought and installed in four stores in Bucharest and at the farm to allow consumers to buy fresh milk ‘direct’ from the farm.

    Results & Benefits

    As a result of the investments, productivity soared and four new jobs have been created. The farm currently owns approximately 500 head-stock producing 5000 litres of milk per day. Utilising vending machines ensures that half of the milk can be directly purchased by consumers who wish to buy fresh milk without preservatives. I.e. a ‘short supply chain’ was introduced enabling the producer to retain a higher proportion of the retail price. The remainder of the milk goes to milk processing plants.

    Lessons learnt

    The farm’s team of specialists succeeded in increasing on-farm productivity and marketing margins through sound investments and to make the farm more well known among the local people. The milk is now much better commercialized through the vending machines that have become popular among consumers - and children from Bucharest come regularly to visit the cows and have a glass of fresh milk. This shows that careful implementation of investments can enable multiple aims to be achieved.

    Project location and other information

    Pantelimon Commune, Ilfov County.

    Region

    Bucuresti - Ilfov

    RDP Territory

    Romania

    Total project cost (€)

    500 954

    EAFRD contribution (€)

    159 395

    National contribution (€)

    39 849

    Private contribution (€)

    301 710

    Contact name

    Mihai Petcu

    Telephone

    +40 372 712 692 / +40723 067 543

    Languages for contact

    English, Romanian

    At a glance

    Country

    Romania

    Final beneficiary type

    Other

    Budget range

    > €500 000

    Start date:

    01/12/2008

    End Date:

    31/12/2010

    Theme / Measure:

    • Competitiveness of Agriculture & Forestry
    • Restructuring, developing physical potential, and promoting innovation
    • 121. Modernisation of agricultural holdings

    Keywords:

    Agri-food industry, Retail, Dairy sector, Machinery, Milk

    Last update

    19/06/2014