Alaska eyes milk exports to Canada, African countries

MANILA, Philippines - Alaska Milk Corp. is looking at export opportunities, having received inquiries from Canada and several East African countries. In an interview, Alaska President and Chief Executive Officer Wilfred Steven Uytengsu, Jr. said the company is testing commodity-based bulk exports to countries with Filipino communities. "We have two small trial shipments. If all goes well, hopefully we can expand our exports," he said on the sidelines of a software summit Tuesday. Meanwhile, the milk manufacturer is trying to keep prices down so as not to affect consumption as consumers reel from rising inflation. "What we want to do is keep looking at ways and means [to mitigate price increases] by becoming more efficient, looking at reformulations and using technology that can help keep costs down," he added. But price hikes might be inevitable, he said. "[Keeping prices down] is the company’s objective, but like with anything else we can’t... guarantee that." Aside from slowing demand, the drought in dairy-producing countries New Zealand and Australia is also putting a pressure on prices. Mr. Uytengsu was one of the keynote speakers at the SAP Summit in Mandaluyong City. The summit aimed to inform large and mid-sized companies how they can keep pace with competition and changing customer demands through the use of software. Alaska has bought three brands from Swiss food and beverage giant Societe de Produits Nestlé S.A. — Alpine, Liberty and Krem Top. The company also acquired the license to import, produce and distribute milk products under the brands Carnation and Milkmaid. The company’s product line includes powdered filled milk, plain and chocolate UHT (ultra-high temperature) milk, yogurt drink and all-purpose cream. Alaska’s net sales for the first nine months of 2007 went up by 50% to P6.222 billion from a year earlier. Mr. Uytengsu has traced their growth to the company’s sustained marketing campaign, especially during the third quarter going into the peak Christmas season. — Louella Desiderio, BusinessWorld