I will be looking into the local family owned organic dairy farm based in the Adelaide hills, called Paris Creek Farm. I will be investigating its background information about the family and how they set it up, I will be looking at how they are managing it and how they have keep it running, how they advertise their product, how they keep customers and how it all benefit the community. I chose to study a business like this as I have a big interest for organics and dairy farms are always the business that struggle money wise so it is interesting study one that has made its way to selling interstate. I will be collecting information off of the internet then referencing them, talking to my parents who are organic wineries owners so getting and insight as to what is involved in getting the organic certification and lastly looking in books so find some general how to run a business books.
Paris Creek Farm is an organic dairy farm, it is one of Australia's finest producers of award winning dairy products. This service is family owned by Ulli and Helmut Spranz. In their country home of Germany, Helmut earnt an engineering degree in agriculture and worked in a variety of farms in Germany and Switzerland. Ulli always dreamed of owning a big farm as growing up she lived very urban. Helmut and Ulli wanted to give their family a healthy life style away from the city and at the same time they are aiming to produce on their farm the best quality and healthiest food possible. They wanted to help other families like them with kids growing up eat nutritious food which is why they made their product organic. They also wanted to show people that it is a small step to having a healthier and longer life without having all the artificial hormones that are found in your regular yoghurt. From the start in the service wanted to be organic and it has always been that way. Since the couple had migration to Australian in 1998 they found the property they made it organic and it has stayed that way. The business got their organic certification in 2001 and to now 2018 they have managed to keep their organic certification and are still making all types of dairy products. In fact, since they opened this business they only sold in the state and locally. Now they sell interstate and have been making quad triple the amount of dairy. This farm has been growing bigger since the start and their dream is for it to get bigger and bigger.
The Building Blocks
Government Corporation- Government Corporation is a large organization created by a country's government to carry out commercial activities.
International Trader- International trade is the exchange of capital, goods, and services across international borders or territories.
Sole Trader- Sole trader is a person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses.
Partnership- A Partnership is an association of two or more people as partners
Trust- A Trust is an arrangement whereby a person holds property as its nominal owner for the good of one or more beneficiaries
Public Company- A Public is a company whose shares are traded freely on a stock exchange.
Private Company- A private company whose shares may not be offered to the public for sale and which operates under legal requirements less strict than those for a public company.
Paris Creek was founded 22 years ago by Helmut and Ulli Spranz. They applied the principles and practices learned from working as dairy hands in the Swiss Alps to become owners of organic farming in Australia. Paris Creek has recently upgraded its processing capacity from 10 million litres a year to 30 million litres a year. It is understood the business current milk intake is about 11 to 12 million litres a year. It produces a range of products including, milk, cheese, butter and yoghurt. It has a gross revenue of $19.8 million in the 2017 financial year. Primary Opinion's 2017 annual report showed it made a loss before tax of $10.27 million. This means that for a dairy farm that are usually found that struggle Paris Creek has managed to keep themselves going and will continues in the years to come. They will always have to be careful as if any chemical pesticides get in contact with any of their property they lose their whole organic certification and they will have to wait a minimum 4 years to be able to get the organic label back.
MARKETING AND ADVERTISING
Paris Creek Farms is in a very hard market to compete with, dairy farms are always in the danger standard as the price for dairy goes down, farmers find it hard to use money for what they need to keep their business running. Along with equipment, hands on labour, animals, land and many more things needed cost a lot to keep running. Dairy is getting sold for cheaper and cheaper everyday so when we get the profit of buying cheaper milks, the farms are struggling with that price as they don't make any extra profit from it. As for Paris Creek Farms they built their name off of mainly being organic so this meant they got put in a different market to the rest of the dairy farms. This business did they right things by taking themselves out of the cheap dairy market and moving into organics as not only is better for them but it makes their product more expensive and people know that by choosing organics it is better for them, a lot of people now are starting move to organic foods. It is a great way to keep their customers as they know that they are benefiting by this decision of buying organics. This particular industry has been made from a farming family and then have built it up themselves and them being local is another reason as to why people want to support it. Since 2001 when they go their organic certification they have kept everything the same. Including their logo which they made up with idea they both had before they run up this business. Their logo is a signature label that people will recognise. This product reaches its target audiences by produces a wide range flavours to a big selection of dairy products.
CORPERATE AND SOCIAL RESPONSABLITY
This company's way of benefiting the community is the decision they made in 2001 to make that changes to their farm to become organic. This is just one simple way they have benefit the community as now when people see “organic' label on a product, especially now days a lot of people are buying it more as they know they will get something from it. As their whole farm is organic it means they don't spray any pesticide into the air so they are making a difference with the pollution level in the air just by being organic.
This business is run by a local family so people know they will be getting what they are paying for. Pairs Creek Farms won't be like other businesses that will find ways to give you either a knock off or scam you. It has a strong business team behind it that gives it the best options and that is why is has been running for 18 years now.
To meet this demand, the company recently upgraded their processing capacity from 10 million litres to approximately 30 million litres. The recent factory upgrade of $8.5m opens new doors for how the business will work and grow in the next years. Since Paris Creek Farm became organic they really opened up new options for them and since their product has been highly succeeding.
...(download the rest of the essay above)