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Emerging market dairy customers 'setting a standard': Tetra Pak

By Mark Astley+

03-Jan-2014

The once clear divide between the technological demands of dairy manufacturers in developed and emerging markets has become increasingly blurred, Tetra Pak’s VP of technologies and service products has claimed.

Speaking exclusively with DairyReporter.com, Lawrence Mott, vice president of technologies and service products at Tetra Pak, said that it has become “increasingly hard to conclude” whether a divide between the needs of its customers in emerging and developing markets exists.

“We used to have offerings for developing countries and offerings for developed countries. But it isn’t as simple as that anymore,” said Mott.

“Now, some of the most modern and sophisticated dairies in the world have actually been installed and are running in what you might call developing countries.”

“This has become quite an interesting phenomenon in recent years,” Mott said.

“Most advanced plant”

Mott, speaking via telephone from Tetra Pak's Swedish HQ in Lund, pinpointed Vietnam’s largest dairy manufacturer, Vinamilk, as a prime example of this “phenomenon.”

In September 2013, Vinamilk unveiled its new $110m Vietnam Milk Factory – a facility described by Bert Jan Post, managing director of Tetra Pak Vietnam, as “by far the most advanced plant in automation and integration that Tetra Pak has ever built.”

The site, which will initially boast a processing capacity of 400m litres per annum, includes nine Tetra Pak A3/Speed iLines, eight Tetra Pak A1 iLines, and the Tetra PlantMaster, a system that allows Vinamilk to control everything from incoming raw materials to the processing, packaging and palletizing of its products.

This facility, according to Mott, sets a precedent for the entire dairy industry.

“They are absolutely setting a standard,” said Mott.

“There are other factories that are using the same technology, and even a few on such as grand scale, but this is a special one by any standard.”

Lowest possible operation costs

In addition to Vinamilk, much of Tetra Pak’s emerging market growth is on the back of demand for its most advanced technology, said Mott.

“There is an expectation nowadays, especially with the consolidation of the dairy industry, that this state of the art equipment is available where it needs to be put,” he said. “That is why we see much of our growth in China on the back of some of our most advanced technology platforms such as our A3/Speed and our fully integrated lines.”

“All customers are different, but if you are striving for high volumes and you have the opportunity to integrate to this level it can significantly reduce your operational costs.”

“Even in emerging countries, our customers strive for the lowest possible operation costs. And we are here to help them achieve that,” said Mott.

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