Operational Challenge

Duynie Consulting carried out a Zero Point analysis to understand the market in depth, and was able to identify how much potential value was being left on the table. Demand for feed is high in Southern Spain, as there is limited grazing in this arid region, but the comparatively small number of farms means a high market share is necessary for profitable operations.

• Duynie Consulting’s analysis showed there is unrealized potential, across the value chain, from logistics management to on-site storage at farms.
• Lack of telemetry meant it was never clear whether grains were available, resulting in wasted journeys, as buyers were obliged to check silos manually.
• We also identified a need for better analysis of co-products, notably of spent yeast, where fluctuating ethanol content suggests that recoverable beer was being lost.

 

Duynie response

Working with the brewery management team, Duynie Consulting is improving co-product quality and consistency. Telemetry has been installed in silos to alert buyers when full truckloads are available for collection, enabling more efficient logistics planning. This reduces time spent in transit and raised load factors, while reducing transportation costs, raising value and profit to the company.

Duynie has deployed an expert animal nutritionist to work with buyers and farmers, raising appreciation of co-product value, leading to higher prices and stronger demand. Duynie works with the brewery on a gainshare basis. Buyers earn more as they grow the market and ensure that pricing is in line with market norms (instead of lower, as in the past). Duynie’s profit is directly linked to improved financial results for the client’s own business.

 

Outcomes

The work done by Duynie Consulting has led to a win-win for everyone involved.

• Co-product quality has increased, leading to better ethanol recovery and more consistent output.
• Logistics management on-site is far more efficient than in the past.
• Partnership with local stakeholders means that ambitious and efficient local buying partners are growing the market.
• Environmental impact is lower through reductions in journey lengths and number of truck movements.
• The agricultural market in Southern Spain, a major economic driver in the region, is benefitting from easier access to high quality feed and expert advice.
• The business in Spain is now seeing significant profit growth from co-products.