About company „Pieno žvaigždės“

ABOUT US

Company AB „Pieno žvaigždės“, founded in 1998, is the biggest and the most modern milk-processing company in the Baltic states.

At present it unites the following milk – processing companies: Mažeikiai dairy, Kaunas dairy, Pasvalys cheese-making plant and runs the company AB „Panevėžio pienas“.

Not only do we try to manufacture fresh, healthy and good products, but we also support the Lithuanian National Olympic Committee. We help our sportsmen and sportswomen to achieve their victories. Moreover, we take part in eecology projects, promoting utilization of the used packaging which is useful to people and does not harm nature.

The vision of this company is to become a modern manufacturing and management company that holds strong positions in the Baltic market and receives permanent and long-term profit.

The mission of this company is to manufacture only the highest quality dairy products that are free of preservatives and that would guarantee healthy nutrition and, at the same time, would make the food preparation pprocess much easier.

The slogan of the company is „Dairy products for healthy life“!

The company „Pieno žvaigždės“ is one of the biggest food manufacturers in the Baltic countries. In the local market, the company is known for its dairy products: mmilk, fermented milk, butter, and cream, various types of curd, yogurts, milk deserts and enzyme cheese.

The major share of the exported products is comprised of semi-dry enzyme cheese, butter, dry separated milk and whey milk powder. At present, the greatest amount of products is being exported to the European Union and Baltic countries, Russia, CIS, Japan and the USA.

At present companies under the company „Pieno žvaigždės“ manufacture products of more than 500 different names. With regard to the European tendencies and the ever changing needs of customers we constantly renew our product range and offer our customers new products every year. Companies are constantly modernised and the latest technologies, the most modern manufacturing and packaging equipment, quality laboratories are being iinstalled. In order to deliver the products made to supermarkets and consumers in the shortest time, systems of product ordering, transportation and storage are under constant modernisation.

In the year 2002, the company and separate companies running under the company were granted ISO quality certificates. Therefore, we are obliged to work efficiently, guaranteeing the high quality of the products manufactured.

As the company „Pieno žvaigždės“ is constantly introducing new products, it is often called the „dairy fashion dictator“. In the markets of LLithuania, Baltic countries and Russia the following trademarks are popular and favoured: DVARAS (the family of natural pasteurised milk products), BIOS (the family of products with bifido-bacteria), MŪ (milk in aseptic packaging), SMILGA (premium deserts and yogurt group), MŪSŲ (the most popular and varied product group), BIOLA (pro-biotic drink with Lactase bacteria), OKTAVA (fresh cream ice-cream), JO (the most popular yogurt in the local market), SVALIA (semi-dry enzyme cheese, the main among the products exported).

Nutrition specialists appreciate products of this company for their quality, taste and novelty. Since the establishment of the company „Pieno žvaigždės“, the specialists look into the future and work as a harmonious family. They create a better and healthier life for their customers, partners, country and themselves.

Branch „Kauno pienas“

In the year 2000 reconstruction started in the branch of AB „Pieno žvaigždės“ „Kauno pienas“. Substantial renovation was taking place – from the department of milk reception to the product packaging lines. All manufacturing shops were renewed, novel product preparation, manufacturing and packaging lines were installed, reconstruction of facilities for manufacturing new products was made, modern laboratory equipment for testing dairy products were obtained. The investments into restructuring of the plant amounted to LTL 30 000 0000.

In the year 2003 reconstruction of the branch of „Pieno žvaigždės“ company „Kauno pienas“ was over and presently technologies used in it are among the most modern in Europe .

Modern equipment uses as well as technologies employed enable to manufacture fresh high quality products having long selling terms without using any chemical additives.

In the year 2001 a system of analysis of risk factors at the most important points of management was introduced. It may be regarded as the first stage of implementing a contemporary quality management system. Standard ISO 9001 has been implemented in „Kauno pienas“ in the year 2002. The number of employees of „Kauno pienas“ amounts to 840 persons.

Production capacity of the plant – 165 tons of milk per shift and monthly turnover amounts to LTL 7 million. Consumer is offered 150 titles of products which may be divided into 12 groups: milk, skimmed milk – based drinks, yogurts and yogurt – based drinks, cream, butter, curd, Lithuanian cheese, coated cheese, melted cheese, deserts, etc.

Manufacturing and offering the consumers such dairy products which, by their quality and price, correspond to their expectations is the most important goal the branch of AB „Pieno žvaigždės“ &– company „Kauno pienas“.

Branch „Mažeikių pieninė“

With the development of milk- based economy a necessity to organise milk collection, processing and sales institutions emerged. Establishment of milk – processing industries on co – operation basis started. Companies „Lietūkis“ and „Gamintojas“ (Šiauliai) were among the first to establish co – operative dairies. Similarly, on co – operative basis, in the year 1926 at the crossing of Tirkšliai and Seda streets a dairy of Mažeikiai belonging to Mažeikiai Co – operation Union was founded. Already in the year 1936 the dairy was capable of buying – up 1300 tones of milk annually.

Until October 12, 1948 the dairy of Mažeikiai was owned by the company „Pieno Centras“and later on – by „Masloprom“. Beginning with January 1, 1951 butter plant of Mažeikiai used to belong to Klaipėda region Butter – cheese manufacturing trust, from January 1, 1954 – to Šiauliai Butter – cheese manufacturing trust and later on – to Šiauliai Milk center. In the process of amalgamation of butter manufacturing plants attached to the dairy of Mažeikiai were dairies of Laižuva ( 1952), dairy of Lūšė (1955) and dairy of Seda, the amalgamated company turning into Mažeikiai Central butter manufacturing plant.

At

the beginning of the year 1972, from old premises situated at the crossing of Tirkšliai and Seda streets, the plant was transferred to a new building situated in the north – west part of the town, at the beginning of Skuodas street . Designed capacity of the plant was to process 70 tones of milk per day. Beginning with July 1, 1976 the Central butter manufacturing plant separated from Šiauliai Milk center turning into Mažeikiai Butter manufacturing plant and becoming ddirectly subject to the Ministry of meat and milk of the Lithuanian SSR. The manufacturing area of the plant included two shops in Mažeikiai and in Akmenė. Later on, beginning with April 1, 1977 , amalgamated to it was dairy of Skuodas, which formerly belonged to Klaipėda Milk center.

Within the period 1977 – 1978 a reconstruction of the plant took place processing capacities reaching 110 tones of milk. In the years 1982 – 1983 butter manufacturing shop was reconstructed, iinstalling two Germany – made FBFS type continuously operating butter manufacturing lines having capacity of 2 tons of butter per hour. Reconstruction of milk powder manufacturing shop took place in 1983. After reconstruction processing capacity of the plant reached 150 ttones of milk per day. Beginning with the year 1990 the Butter manufacturing plant was turned into Mažeikiai State milk processing enterprise under Committee for Agriculture and Industry. In the year 1991 the first Alpha – Laval separation line was assembled in it. Until 1993 individual milk manufacturers, companies and economies of Akmenė, Skuodas and Mažeikiai districts were the main suppliers of raw material. The biggest amount of milk – 140 230 tones was bought up in the year 1990. The products made then included 4 653 of butter, 220 tones of cheese, 25 736 tones of full – cream dairy products, 40 096 tones of milk powder. After restoration of independence of Lithuania in 1991, when mass liquidation of ccollective farms started a sudden drop of bought – up milk was observed.

After partial privatisation of Mažeikiai State processing enterprise in 1993, it was, in accordance with the provisions of the Law on industrial enterprises of the Republic of Lithuania , reorganized into Mažeikiai State stock dairy. The smallest amount of milk – 58 093 tones was bought up 1994. In 1993 a reconstruction of milk powder manufacturing shop installing new GEA WYGAND vacuum apparatuses was made. Under the iinfluence of market laws the scope and geography of the products sold became more extensive. Previously sold in Akmenė, Skuodas and Mažeikiai districts and in the CIS countries the sales of Mažeikiai products expanded into the whole territory of Lithuania . Export of milk powder to Japan, Holland , Denmark , Finland and other countries began.

On October 13, 1994 the company name AB „Mažeikiai dairy“ was registered with the State Patent bureau. In the year 1995 named „Mažeikių dairy“ (on April 19,1995 it was included into the Company Register and the by – laws of it were approved). The volume of production started growing up and the quality of it improved. Manufactured in the year 1995 were 1 852 tones of butter, 185 tones of cheese, 12 579 tones of full – cream milk products, 3 536 tones of milk powder. The number of employees from 490 in the year 1990 grew up to over 600 in 1996. In 1996 construction of own boiler – house was finished because the old one belonging to bankrupting AB „Oruva“ was not able to satisfy ever increasing demands of the plant and was hampering normal process of production. Two 6 tones per hhour capacity Finnish steam boilers were installed in it.

A resolution to increase stock capital of the plant by LTL 6 million and all package of shares to transfer to the company Agrolitas Imex Lesma was passed by the sitting of the Board on April 18, 1997.

The sitting of the Board of August 22, 1997 passed a resolution to buy a bankrupting company AB „Tauragės pieninė“. On May 1, 2001 the shop in Tauragė which after amalgamation with cheese – manufacturing plant in Pasvalys became irrelevant was given over to AB „Vilkyškių pieninė“.

In spring of the year 1998, when the transport fleet increased to 200 units a transport facility in Tirkšliai was obtained.

On December 31, 1998, after voluntary amalgamation of two independent companies – AB „Mažeikių pieninė“ and AB „Pasvalio sūrinė“ company AB „Pieno žvaigždės“ as well as a branch of it „Mažeikiai dairy“ comprising shops in Skuodas and Akmenė was registered.

The face of the company and the branch of it in Mažeikiai is changing from day to day: reconstruction of the shops is taking place, more advanced technology is being implemented. In the year 2002 a new computerised line for washing equipment TETRA ALCIP was iinstalled and at the beginning of 2003 a new department for the manufacturing of separated curd started functioning. Similar changes have taken place in milk pouring department. Beginning with June 1, 2003 a sales division situated in Vilnius and in October a sales division in Klaipėda separated from the Branch. In the course of de – centralization of manufacturing milk products and after re – distribution of milk collection zones the distances of delivery of milk products reduced as well as related milk collection costs. After reconstruction of the previously not used building for the manufacturing of milk mixes in the year 2004 a block for technical services was opened. Reconstruction of butter manufacturing department is taking place in 2004 and reconstruction curd manufacturing department and of the warehouses is planned.

Branch „Panevėžio pienas“

Stock company „Panevėžio pienas“ has long – lasting traditions of manufacturing dairy products. The first dairy in Panevėžys was established in 1942 and in the year 1995 it turned into a stock company. It ranks as one of the biggest and most modern plants for the processing of dairy products in the country. Every year a certain part of the funds is channelled for renovation and modernization of

facilities and premises yet the biggest share of investments is used for purchasing the newest equipment and advanced technologies.

To satisfy the needs of consumers and to manufacture high quality safe dairy products is the goal of the company. Working under market conditions and seeking to expand the volume of sales of the products manufactured it is necessary to assure and constantly improve their quality as well as to create novel and singling – out ones. To this end as eearly as in the year 1997 implementation of system of analysis of risk factors at the most important points of management started. Presently the above system is completely implemented. In the year 2003 a specificative audit was made and the company was certified in accordance with the requirements of quality management system ISO 9001.

To manufacture high quality products proper raw materials are needed. To this end, a separate procurement department taking care of the quality of milk bought up wwas established in the company. Milk of healthy cows is needed to manufacture safe and quality dairy products. Testing of the quality of the products manufactured as well as of milk bought up is made in completely restored and technically rrenovated laboratories.

Within the recent years renovation of equipment department was completed – homogenizer and normalizer obtained enable to normalize milk in a stream. Modern automatic packaging equipment made by Swedish company „EcoLean“ have been assembled in the shop for packaging dairy products and now milk, yogurt, drinks made of skimmed milk are packed into contemporary, ecologically clean packaging having the form of a small jug. Technological equipment for manufacturing yogurt and yogurt – based drinks have been substantially replaced and equipment for the manufacturing of sterilised milk based drinks has been assembled. Novel equipment for the manufacturing of layered ice – cream has been obtained. Curd manufacturing equipment have been renewed: separator of whey in the shop for manufacturing ccoarse – grained curd has been assembled, automatic grained curd packaging machine was reconstructed and adapted for contemporary packs, a new coated curd cheese products manufacturing line has been assembled.

Considerable attention is being paid to the quality storing of dairy products made: new intermediate warehouses have been equipped in the company, refrigeration chambers have been renewed and contemporary warehouses and refrigerators have been constructed in Vilnius and in Klaipėda .

The product range of “ Panevėžio pienas“ includes over 990 titles: pasteurised milk, cream, skimmed milk, yogurt, enzyme, mould – type, brine – ripened and smoked cheese, butter, curd and curd products, coarse – grained curd, ice – cream. Over 19 per cent of the products made are exported. Products manufactured by the company frequently become prize – winners at various exhibitions: in 1995 butter made by the company at exhibition „Agriculture of Lithuania“ was recognised the best exhibit of the year, in 1996 for outstanding manufacturing – financial results AB „Panevėžio pienas“ was nominated Republican laureate of the Presidium of Lithuanian Confederation of industrialists and received Honour Diploma, in 1997 coarse – grained curd became the best product of the year and in 1998 at international exhibition „Agrobalt“ it was decorated with a medal, at the competition “ Lithuanian product of the year“ of 1998 caramel ice – cream was recognised the best product of the year, company made butter became best product of the year 2000. In the year 2001 packaging „LeanPack“ used by „Panevėžio pienas“ has at exhibition „Riga Food“ been recognised most impressive in the Baltic countries. Even two products manufactured by AB „Panevėžio pienas“ received high evaluation at the competition “ Lithuanian product of tthe year“ in 2001: coarse – grained curd with fruits and berries added was awarded a diploma and mold – type cheese“ Lithuanian brie“ was nominated the best product of the year. The above cheese was also decorated with a medal at international exhibition „Agrobalt 2002″. In the year 2002 drinkable yogurt with fruits and berries added was awarded a diploma. In the year 2003 coated curd cheese „Nykštukas“ was nominated the best product of the year.

Branch „Pasvalys cheese-manufacturing plant“

On October 1, 1948 in the district of Pasvalys a Talačkoniai butter manufacturing plant, belonging to Šiauliai trust of butter and cheese industry was established. Beginning with April 1, 1957 the plant was given over to Panevėžys Milk center. On july 7, 1960 Talačkoniai butter manufacturing plant was turned into Pasvalys Central butter manufacturing plant comprising kasein manufacturing plants in Ąžuolpamūšys, saločiai and tetervinai. In the year 1962 amalgamated to it were butter and dry milk powder manufacturing shops in Joniškėlis, Pušalotas, Vaškai and Krinčinas.

The amounts of milk sold to the state increasing rapidly, butter manufacturing shpos were not capable of processing it. In the year 1967 an an appeal regarding projecting a new plant was made. In the yyear 1974 preparatory work started and on march 23, 1977 separation of milk was launched. On March 30manufacturing of cheese of 5 tones of milk started. Later on production volumes were increasing from month to month. The product range included famous cheese „Russian“, butter, a substitute of whole milk.

Until the year 1990 cheese manufacturing plant in pasvalys used to belong to Panevėžys Milk center. In accordance with Company register law of the Republic of Lithuaniath board of Pasvalys district on November 15, 1990 registered Pasvalys State cheese manufacturing plant. On June 28, 1993 Pasvalys District Board, following laws of the Republic of Lithuania on the primary privatization, on state – owned enterprises and on the state register issued an ordnance to register State stock enterprise „Pasvalio sūriai“. General meeting of shareholders of the state stock enterprise „Pasvalio sūriai“ had on september 24, 1994 passed a resolution to re-register it into a stock company AB „Pasvalio sūriai“. On Decenber 31, 1998, following amalgamation of it with AB „Mažeikių pieninė“ a branch of AB „Pieno žvaigždės“ company Pasvalys Cheese manufacturing plant was registered which is presently operating quite successfully.

Within this period considerable changes took place in the Cheese manufacturing plant.:

improvement of cheese manufacturing was continuing and expanding. To substitute formerly used Hungary – made baths in the year 1999 three modern company Damrow made cheese evaporators and a pressing bath were obtained. A milk pasteurization 25 tones per hour capacity line was obtained in the same year and a centralised washing station to wash the above facilities was constructed. Within the period 2002 – 2003 construction of an out – house for the manufacturing of cheese was taking place aand a modern Tetra Pack cheese manufacturing line capable of manufacturing 20 tones of enzyme cheese “ Svalia“ or „Gilija“ per day was assembled. Also obtained a new milk pasteurization line enabling to eliminate alient microflora from milk resulting in improved quality of the cheese manufactured. In addition to it, new department for ferments which are added to milk in the course of cheese manufacturing was equipped. At the same time a contemporary line for pulling cheese into the bags oof Cryovac company was obtained. Cheese packed using the above line mature well contributing to improved quality as well as to their design. New tetra Pack cheese pressing line put into operation this year substituted former old presses of cheese. AA modern storage facility for maturing cheese is already nearly equipped.

QUALITY

Food safety and quality management systems used at AB „Pieno žvaigždės“ AB „Pieno žvaigždės“ is one of the biggest milk-processing companies in Lithuania, it consolidates three big companies of the country: „Mažeikiai dairy“, „Pasvalys cheese-manufacturing plant“ and „Kauno pienas“, and it also controls AB „Panevėžio pienas“. At present AB „Pieno žvaigždės“ manufactures products of more than 500 different titles. Company’s production is intended for the local market, as well as for export to the countries of the European Union, countries of the CIS, Baltic countries, Russia, the USA and Japan. Enzyme cheese, milk powder and butter are the main AB „Pieno žvaigždės“ products manufactured for export markets and these hhave earned recognition due to their immaculate quality. These have also been granted international product quality certificates.

In order to sustain the leading position, AB „Pieno žvaigždės“ strictly monitors qualitative indexes of raw milk and constantly modernises manufacturing. These factors have a direct influence on the quality of a final product, which has been recognised many times by nutrition specialists, and ordinary customers also prove it by the constantly growing sales.

Food safety system

In 2002, the State Food and Veterinary SService granted wellness marking (veterinary certificates) to branches of AB „Pieno žvaigždės“, which permit to export production to countries of Europe. This marking proves that the company complies with hygiene norms of Lithuania and meets hygiene requirements of the European Union, and that company implements good manufacturing practice. Compliance with all these requirements guarantees manufacturing and control of safe and high-quality products.

The system of analysis of risk factors at the most important points of management (ARFIPM) is the most efficient modern system ensuring food safety. It allows controlling defined risks and risk factors, and important management points which are related to the process of food manufacturing, transportation and consumption and improves quality control. Companies prepared, installed and run programmes that provide conditions, means and behaviour rules, which prevent biologic, chemical or physical contamination and guarantee product safety and quality.

The system of analysis of risk factors at the most important points of management (ARFIPM) is the most efficient modern system ensuring food safety. It allows controlling defined risks and risk factors, and important management points which are related to the process of food manufacturing, transportation and consumption and improves quality control. Companies prepared, installed and run programmes that provide cconditions, means and behaviour rules, which prevent biologic, chemical or physical contamination and guarantee product safety and quality.

Food safety system and good manufacturing practice form the first stage of implementing a modern system of quality management.

Quality management system

The next stage of implementing the quality management system is an international ISO 9001. Quality management systems. Requirements Standards. In the course of two years, the quality management system, complying with the requirements of this international standard was installed in all branches of AB „Pieno žvaigždės“. In 2002, the certification institution TUV SERT carried out a specificative audit in the company and, as a result, all branches of AB „Pieno žvaigždės“ were granted certificates attesting that the quality management system is created, legally documented, implemented and maintained in all companies.

Main quality management principles:

1. The quality management system is oriented towards a customer, thus a lot of attention is devoted to fulfilling customer’s needs and expectations. The quality management system ensures that all present and future customers’ needs are conceived and that the company is doing its best to fulfil their requirements and overcome their expectations.

2. Direction of the company sets united aims and goals. Heads of the company create environment where aall employees take part in order to achieve aims.

3. Employees of all levels are involved in company’s work.

4. All activities of the company, as well as the recourses related to them are managed as a process.

5. Interconnected processes are defined, understood and managed as a system, and this increases company’s capacity and efficiency.

6. Company’s target is constant improvement. Improvement activities are integrated with company’s strategy and every worker seeks improvement of a product, process and systems.

7. Resulting solutions are based on data and information analysis.

8. A lot of attention is devoted to connections with suppliers.

9. Enjoyment of the ISO 9001 certificate proves that the structure, duties and responsibilities are strictly defined in the company, processes and procedures set out, major documents controlled and constantly renewed, checked and that management activities are carried out regularly, while the non-conforming ones are identified, analysed and corrected, even more, the prevention of non-conforming ones is ensured.

PRODUCTION

• Group of products

• Butter (15)

• Butter type product „Kastinys“ (3)

• Coated cheese (31)

• Cream (7)

• Curd (39)

• Curd cheese (23)

• Desserts (27)

• Enzyme cheese (15)

• Fermented milk (7)

• Fermented milk drink (12)

• Grained curd (6)

• Ice cream (51)

• Kefir (20)

• Melted cheese (25)

• Milk (33)

• Milk drink (3)

• Milk

powder (4)

• Smoked enzyme cheese (4)

• Sour cream (18)

• Spreadable curd cheese (4)

• Sweet curd cheese (16)

• Yogurts (90)

AB “PIENO ŽVAIGŽDĖS”