Small steps to big results Gallicoop Turkey Processing

SMALL STEPS

TO BIG RESULTS

During the recession the food industry has faced many challenges. There have been concerns over the quality of food, increased consumer demand for more ‘natural’ products and increasing costs for the production of quality food stuffs. One company, Gallicoop Turkey Processing Pltd, has met these challenges head on and is emerging as the provider of choice for many customers. Edina Beale investigates.

Gallicoop Turkey Processing Pltd was established in 1989 as a British-Hungarian venture with the aim of creating an integrated closed system turkey breeding plant by securing the necessary feed and processing and supplying poultry products from one site. This business strategy enables the company to control each and every step of its operation process from nursery to the table. From the production of special poultry feed, through breeding and processing turkey and then delivering the final product to the market, the integrated system allows Gallicoop to guarantee compliance with EU food safety and provide excellent product quality.

Listening to the wants and needs of the consumer, the company has made a number of substantial improvements to its production line and to its operation procedures. Today Gallicoop produces an extensive range of advanced quality products for direct consumption; in addition to fresh poultry produced during primary processing the product range includes sausages, ham-type products, cold cuts, pates, cooked and smoked alimentary substances, wieners and breaded products.

In the past few years the company has introduced a number of new products to the market, including Natura turkey breast and Körös turkey breast ham. However, the most recent and significant innovation has been launched to meet consumers’ increasing demand for more natural and less processed food – a cold cut product without E numbers. This is the first product of its kind in Hungary.

Prudent spending in recent years has ensured that the company maintains the highest of standards, although investment has had to be limited to areas where there was sound, identified business need. However, money has been spent over the past ten years and the investments that have been made are worth recognition.

In 2006 a new sewage system was introduced. In 2010 a substantial investment was made to build and operate a biogas plant; this project was completed in 2012 and now provides an additional resource for the company. In 2011 two new production lines were installed; the first for coating products, the second, for frying them. These projects were completed despite the prevailing fiscal situation.

Recently Gallicoop has made an important investment by increasing the capacity of its cooling storage facility and has also invested wisely in the digital age; it started by introducing its Facebook page and has strengthened its media communication policy.

Investment has also been made to ensure that brand recognition is increased; this has been achieved by an increased advertising campaign and budget.

People First

Whilst branding and brand recognition is a vital part of the business, the employees who produce the product are the key ingredient to the company’s continued success. Gallicoop is the largest employer of the Békés county region and provides jobs for 906 people and therefore supports, directly and indirectly, many thousands of people. The company has been able to maintain staff numbers throughout the difficult recession years, as it is against its policy to solve problems by reducing human resources. The company has been steadily increasing its market share, whilst reaching a 32.4 billion HUF turnover in 2012 and a 32.1 billion HUF in 2013. Domestic strengths

In 2013 the company exported more than one third of its annual production; 12 thousand tonnes of turkey meat was supplied to markets including Croatia, Russia, France, UK, Portugal, Spain and Hongkong. This result is a 115.6 per cent increase of the quantity exported in the previous year.

Mr Istvan Erdélyi, managing director, outlines the company’s values: “In the past years we have managed to increase our market position slowly but continuously, whilst extending our export activities. Currently our market share is 44.5 per cent in Hungary. The key to our success is closely related to our six star values: Hungarian workforce, Hungarian basic materials, Hungarian poultry, Hungarian abattoir, Hungarian ownership and Hungarian forage. These values provide us with the strategic and competitive advantage that has enabled us to achieve our market leading position in the domestic market.”

Mr Erdélyi summarises the company’s approach thus: “Predominantly we aim to meet our customer’s needs, and for them the most important is high quality and reliability. Nothing can stop us providing these two key requirements for our customers. In addition to this, we are always looking for new opportunities to become better at meeting these expectations. It is nice to dream big, but we are happy if we continue on our road and make progress with small steps.”

Gallicoop Turkey Processing Pltd has worked tirelessly to ensure that the company and the workforce are united in their aim to provide quality products for their very discerning customers. Despite the adversities that have affected the industry, from the financial sector, the customer requirement sector and other areas, the company continues to take those important small steps that make an enormous difference to a profitable, sustainable business. n