THE PINE HILL DAIRY’S new ultra-pasteurised milk should mean higher dividends for shareholders, a longer shelf-life for consumers and a chance to develop an export thrust.
At a Press conference Thursday, managing director Clyde Gibson said the fully automated plant, upgraded at a cost of $14 million, would help improve the company’s efficiencies and finances significantly.
“We had to make this move at this time. You can look at our annual reports. We were doing $68 million in sales and we were struggling to make $3 million. The return for shareholders at Pine Hill Dairy was very low – three, three-and-a-half per cent. You can take that money and invest it in a bank and get a better return.
“Obviously, we want to give a better return for our shareholders. We want to get it to about eight to ten per cent which is acceptable,” Gibson said. He admitted that because of antiquated, tired equipment, the old plant was inefficient.
“With our new emphasis, the retailers will be able to carry bigger quantities and instead of getting five or six deliveries a week, they will now have two or three at the most. It will also allow us to go regionally and export,” Gibson said.
“It is an investment that is worth it. Once we get over these initial hurdles with acceptability of the product, and some of the problems that come with bringing a new plant and getting it fine-tuned, we are confident that the next financial year could be a very positive one for us,” he said.
Now that the company has moved from pasteurisation to ultra-pasteurisation, Barbadians can stock their milk for three months without refrigeration and still have excellent taste and quality, Gibson stated.
He said sales were tracking a shade above last year and that was a good indicator that a wide cross-section of the country had accepted the new product.
“We are still trying to address those consumers who have said they dislike the taste. We are trying to persuade [them] through infomercials to try the product again.
“Taste is something that you have to get accustomed too. When you taste something for the first time, you can like it very much or dislike it, but taste is something that is acquired and we are pretty sure that the taste is very acceptable.” (MK)
