Over the last few years the fresh milk industry in Malta has undergone "a massive revolution throughout the whole chain of the product from stable to table", says Martin Grech, Malta Dairy Products finance and administration manger.

This involved a complete overhaul of the dairy farms on which the milk is produced, coupled with a large capital investment project within the Benna dairy plant of Malta Dairy Products Ltd.

"The relaunch of the Benna brand provides a deserving showcase to the public of this multi-million-euro investment carried out in the industry. The new packaging of the company's fresh milk products project the new and professional manner with which the industry is operating in full compliance with all European Union standards and regulations," he tells The Times Business in an interview.

This relaunch has also seen the company expanding its product portfolio to include a creamier tasting whole milk with 3.5 per cent fat that complements the other two milk varieties, a new range of milk drinks, a new diversified range of live yogurts as well as the introduction of pasteurised fresh ġbejniet.

Mr Grech says that these products have gone down very well with the public "with demand for them exceeding even the most optimistic of forecasts".

He says Benna has competed well ever since Malta joined the EU and the market was liberalised.

"After the expected initial euphoria which saw the public trying out different options, the majority opted to revert to the local Benna fresh milk and fresh milk products. In a way, competition has strengthened our position since our customers choose Benna because they want to and not because there is nothing else to opt for."

He adds, however: "One has to appreciate that the local Benna dairy is competing with large multinational giants equipped with huge advertising budgets and resources. This does not daunt MDP from pursuing its mission to continue supplying the Maltese population with fresh milk and fresh milk products at a just and fair price."

Mr Grech says that MDP could be looking at exporting its products, pointing out that it is one of the future projects that the company is interested in embarking upon.

"The best shot in the export market would probably be the ever-so- popular ġbejniet that are a unique particular produce of the Maltese islands. Exporting such a product would not only be a success for MDP but also for the local agriculture sector."

He points out that Malta Dairy Products Ltd has invested over €10 million in capital investments over the last few years, while the local milk producers have invested a total of between €25 million and €30 million in the upgrading of their farms. "The end result is that today MDP is receiving very good quality milk from the local producers for processing in its dairy, which in turn is of the highest European standard."

Today, the company has new refrigeration facilities including an 800 square metres cold store that serves as the company's principal finished goods store and a refrigerated and humidity controlled maturation room for the storage of ġbejniet.

"New production equipment has also been purchased for the production of the ever-popular Maltese irkotta. Actually, this investment proved to be a big headache to design due to the fact that Malta is unique in its method of producing irkotta. The Maltese irkotta is actually a prime cheese made from fresh milk and milk solids, as contrary to the Italian ricotta that is made as a by-product from the whey emanating from the production of other primary cheeses. This gives the Maltese irkotta produced by Malta Dairy Products Ltd. its unique taste, texture and consistency," he says.

The Benna ġbejniet are also being produced using a completely new production facility that incorporates the latest technology available in the dairy industry while maintaining the same unique taste and structure of a Maltese ġbejna.

The Benna live yogurts are being made using new production equipment commissioned by a top Austrian company that specialises in the production of dairy technology.

The company has also invested in new tank storage facilities with the purchase of a number of stainless steel tanks with a total space capacity in excess of 350,000 litres of milk.

Mr Gech explains that the local milk producers own 70 per cent of the shares of Malta Dairy Products Ltd through their cooperative.

"The relationship between the milk producers and MDP is much more in nature than a normal supplier-buyer link. The beauty of this connection between the milk producers and the milk processing plant is the full control that can be exercised by the group over the quality of milk throughout the whole life cycle of milk from stable to table. We shouldn't forget that the Milk Producers' Cooperative (KPH) also produces animal feeds that are used by the local milk producers to feed their herds."

MDP has a milk supply contract with all the 140 dairy farms in Malta and Gozo.

"Milk that fails any of the quality parameters set by MDP in line with EU regulations is not accepted by the company. The contract also caters for the manner in which payments for milk supplied are made. Payments are nowadays based on the quality and composition of milk of each and every milk producer. This ensures that the local milk producer has an incentive to continue improving the quality of the milk produced on his farm in search of better farm-gate prices," he says.

Mr Grech says few people in Malta appreciate what lies behind the fresh milk carton found daily at one's nearest store every morning.

"That milk would have been milked by the Maltese herdsman using appropriate milking machines very early in the morning for delivery to the Benna processing plant in Ħamrun. The milk is then simply pasteurised (not sterilised) to retain its natural properties. It is then packed and reaches consumers within 24 hours, ensuring that Benna milk stays as fresh, tasty and wholesome as mother nature intended it to be."

When Malta joined the EU, the government designed a Special Market Policy Programme for Maltese Agriculture with the aim of helping the local agricultural industry adjust to the new market realities. MDP, says Mr Grech, benefited from funds under this programme totalling €600,000 to assist it in upgrading its dairy plant facilities.

"Thereafter, MDP has also submitted applications under Measure 3.2 and Measure 123 (Adding Value to Agricultural Products) of the Rural Development Programme for Malta which is part-financed by the European Agricultural Fund for Rural Development (EAFRD). Our applications have been successful on two occasions with the latest one approved in March being a grant of €150,000 that will partly finance an investment in new ultra-filtration equipment that will cost the company around € 550,000."

He says a company like MDP cannot rely on or wait for EU funds in order for it to carry out its capital investment requirements, pointing out that companies that want to be successful in such a competitive environment need to find the resources to undertake the required capital investments.

"The large majority of the investments will always have to come from the company itself. Obviously, tapping EU funds to finance part of the investment is of great help and gives such companies a boost to continue investing further in their respective fields." He says NSO statistics show that the consumption of liquid milk per capita in Malta is significantly less than the average consumption per capita in the EU.

"This could indeed be due to an increase in consumption of other beverages such as soft drinks, energy drinks and other dairy products that are projected to be a trendier alternative to drinking milk. This has been achieved through large investments in marketing communications that have left these products with significant brand equity in the local marketplace."

Although milk has been consumed since time immemorial, he says, the level and extent of information about its properties and benefits is at best minimal among the Maltese population.

"There are various immediate and long-term nutritive and health benefits in drinking milk as part of a healthy lifestyle as opposed to drinking soft drinks and other beverages. Malta is in fact facing a considerable increase in obesity, with 25.4 per cent of children between the ages of 10 and 16 who are overweight. Various studies have shown that the problem in Malta is worsening due to an increasingly poor diet and lack of physical exercise. This indicator ties in with the indicator concerning the low consumption of milk per capita in Malta which in itself is also an indicator of a poor diet."

Asked if he believes the company has a bright future he answers, "Definitely yes!"

"The company is looking at the future with high hopes without losing sight of the difficulties faced by the manufacturing industry in Malta. The recent relaunch of the Benna brand and the introduction of new products have had a tremendously positive response from the Maltese public, and this in itself is a good indicator that the company is moving in the right direction.

"Competition whether coming from other local companies or from imported products is always healthy and does not discourage MDP from its mission to continue supplying excellent quality fresh milk products at very affordable prices. On the contrary, it probably serves as a spur to continue introducing new quality products on the market. In fact, some more new products are already in the pipeline and are currently undergoing various types of quality tests by the company's product development team," he says.

Mr Grech points out that Benna stands for bnin in Maltese and signifies the goodness of its products.

"Benna products are made from fresh milk that is delivered everyday from the local milk producers. This is as fresh as it can get! The Maltese population is probably appreciating more than ever Benna's brand driver, Frisk Kuljum... l-Aħjar and adopting it as its own personal motto in choosing which products to consume."

The freshness of Benna's products continues to be the company's most important unique selling point together with the good product quality reputation that the Benna brand has built over the years, he says.

"The control over the entire lifecycle of milk given that MDP is owned to a large extent by the milk producers themselves is another extremely important factor that customers understand and appreciate by displaying a strong brand loyalty towards their own local milk supply."