Operational Challenge
Our client operates one of Ireland’s most historic and prestigious breweries in southern Ireland. Operating conditions are challenging, as the location makes expansion difficult, so on-site storage is not easy, and that makes logistics management vitally important. Southern Ireland is a major dairy farming region, one of Europe’s most important, yet prices for excellent brewery co-products were not reaching their full potential, due to issues related both to logistics management and buyer relationships.
Duynie Consulting was asked to analyse the position, covering everything from site layout to animal nutrition, and recommend the best way forward.
Duynie response
Our Zero Point analysis showed that lack of telemetry, combined with small on-site storage capacity, made it difficult to manage transportation issues efficiently. It was also clear that existing buyer relationships did not focus enough on market growth, nor on helping farmers understand the nutritional potential for brewers’ spent grains. There was strong market demand, but a new approach was needed to maximise potential.
Working closely with the client, Duynie Consulting tested different options for optimizing the value chain by implementing telemetry to reduce transport movements and logistics costs, while improving environmental performance. Most important, at client’s request, Duynie set up a new subsidiary: Duynie Feed Ireland to provide a complete, end-to-end service.
Outcomes
Duynie Feed Ireland is now full-service partner to the brewery, opening for business on 1st January 2021, in extremely difficult market conditions, during the Covid epidemic, when normal operations have been disrupted for almost a year.
- Duynie Feed Ireland now purchases all co-products from the brewery at a guaranteed price that reflects the outstanding market potential.
- The client now receives higher prices than ever before at the factory gate.
- Duynie Feed Ireland is using its animal nutrition expertise and long-term farming knowledge to build strong relationships with local farmers.
This is leading to higher demand and improved co-product profits for our client.
