FROM FARM TO FORK “A value chain example from meat industry” Özcan Albak Vice Chairman Namet Gıda San.ve Tic. A.Ş. 1 Agenda 1 How we define our value chain 2 Our strategies for managing the value chain 3 Key notes 2 Our value chain Our understanding of “farm to fork” Controlling the system in every step in order to create “value” 3 Our value chain Selling/ Distribution Branded product (packaged meat & delicatessen) Livestock farming Husbandry Feed plantation 4 Our value chain strategies Describing through an example from my company: • Specialization in red meat production from bovine • Learning curves for poultry and ovine are different from that of bovine • Avoiding dairy cattle as its meat/bone ratio is low • Balancing of vertical integration and outsourcing • Outsourcing wheat, barley, clover-based feed; but own plantation of corn to produce silage • Proprietary control over distribution, manufacturing/sales of delicatessen • Spillover effects of upstream operations quality on branded downstream production 5 Spillover effects between downstream & upstream Nutritiousness of feed material Good ration as the main component of FCR Meat/bone ratio : cost of meat 6 Our value chain strategies Sustainable growth through investing in … Feed material Using high-quality corn seeds for quality corn-based feed Custom scientific ration practice for meat breed Livestock Purchasing meat breed livestock Slaughter-houses Obtained hygiene standards certificate Extending shelf-life of meat products from the very beginning Production units State-of-the-art facilities Award winning packing technology Distribution channels Refrigerated truck fleet for maintaining the cold-chain till retailer’s shelf 7 Thank you for your attention Q & A session… Özcan Albak oalbak@namet.com.tr +90 262 658 22 22 8