U'S'P' Marmum

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MARMUM DIARY FARM LLC
MARKETING CHALLENGES IN MILK AND MILK PRODUCTS IN
UAE.
Presented by Imtiyaz Ahmed Latifi Sales
Manager.
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MARMUM DIARY FARM LLC

• Established in 1984. One of the leading and
  oldest Dairy Company, Serving the nation from the
  last 25 years.
• Marmum became a Subsidiary of Dubai Investment
  PJSC since 1996.
• Manufacturing and Marketing of Milk and Juice
  Products.
• HACCP certified. ( Hazard Analysis Critical
  Control Point ) Food Safety Certificate Approved
  by Dubai Municipality.

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Marketing Challenges.
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Internal Challenges.
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Farm.

• Milking Cows
• Dry Cows.
• Heifers (Young stock).
• 1. Feeding and Maintaining the above
  categories, 365 days a year, 24 hrs x 7.
• 2. Regular Vaccination and Medical Attentions
  to the animals.
• 3. On an average 14 to 15 varieties of feed
  requirement. i.e. Alfalfa,
• Fescue, Cotton Seed, Wheat Bran, Crushed
  corn etc.
• 4. Feed / Medicines etc are imported from US,
  Europe, Australia and South
• East Asian Countries as it is not available
  in the local UAE markets.
• The other challenge is to maintain
  temperature below 30 degrees
• centigrade in order to cool the animals
  make them comfortable for right
• production by using Sprinklers , Coral
  Coolers etc.
• Seasonal nature of raw milk production (
  Winter / summer )
• The above factors are having a direct
  affect on the cost of raw milk. The
• cost of raw milk in UAE is 3 times more
  than the cost of Milk in the

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Plant.

• Milk Processing Milk Packaging. (Fresh Milk
  Full Cream, Low fat / Skimmed, Flavoured Milk in
  various SKUs.
• Yoghurt Full Cream, Low fat / Skimmed, in
  various
• SKUs. Laban in Various SKUs.
• Transfer to chilled Warehouse.
• The major challenge during the above process
  is to maintain the temperature level of each and
  every product below 5 degrees centigrade.

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Logistics

• Finished Goods Stock (FGS) is transferred to the
  chilled ware house.
• Loading to the distribution / sales vehicles.
• Maintaining the temperature level of each
  Product below 5 degree centigrade is a challenge
  again.
• The above factors has to go through various
  process, which include various ingredients,
  packaging Materials, Manpower, water ,
  electricity, maintenance of various machineries,
  fuel, and other operating overheads.

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External Challenges

• Sales and Distribution.
• Co-operatives, Hypermarkets, Supermarkets,
• Groceries, Convenient stores (EPPCO/Emarat),
  Restaurants and Cafeteria.
• Merchandising / Promotions / Product
• Awareness etc (Co-ops, Carrefour, Lullu)
• Unsold Products ( Waste cannot recycle
• unlike Pepsi cans etc.) to be destructed

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• Daily Distribution is required due to Fresh and
  highly perishable product. Not like Pepsi, Coke
  or other Long Life items.
• Sales Distribution Through out the year, all
  365 days including - Ramadan Eid Holidays
• Shelf Rentals On an average paying Dhs 3000
  per month with high discounts to the trade.
• Competitors from Neighboring Countries. takes
  more than 30 hours to reach UAE market where as
  local companies need only 3 hours to reach any
  corner of the UAE, thus UAE produced Milk Milk
  Products are the freshest available to Emarati
  Consumers

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• Vehicle Cost / Fuel Cost is high because of
  maintaining cold chain process throughout the
  distribution process.

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• At the end I would like to thank you the Ministry
  of Environment and Water for giving this
  opportunity to share our experience and our
  views.
• We request and appeal to the respective
  Authorities / Ministries to consider and treat
  UAE Dairy industries as National Dairy Industry
  for serving the nation as the most sensitive and
  basic need of the Nation to extend state
  support in order to bring down the operational
  cost and thus encourage UAE Dairy Industry to
  improve and develop with latest technology for
  the future.

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THANK YOU