CHAPTER 1 INTRODUCTION

RAW MATERAIL INTRODUCED CONVERTION OF RAW MATERIAL INTO WIP COVERSION OF WIP INTO FINISHED GOODS SALE OF FINISHED GOODS
Process costing is a form of operations costing which is used where standardized homogeneous goods are produced. This costing method is used in industries like chemicals, textiles, steel, rubber, sugar, shoes, petrol etc. Process costing is also used in the assembly type of industries also. It is assumed in process costing that the average cost presents the cost per unit. Cost of production during a particular period is divided by the number of units produced during that period to arrive at the cost per unit.

MEANING: Process costing is a method of costing under which all costs are accumulated for each stage of production or process, and the cost per unit of product is ascertained at each stage of production by dividing the cost of each process by the normal output of that process. Definition: CIMA London defines process costing as that form of operation costing which applies where standardize goods are produced

Features of Process Costing: (a) The production is continuous (b) The product is homogeneous (c) The process is standardized (d) Output of one process become raw material of another process (e) The output of the last process is transferred to finished stock (f) Costs are collected process-wise (g) Both direct and indirect costs are accumulated in each process (h) If there is a stock of semi-finished goods, it is expressed in terms of equivalent units (i) The total cost of each process is divided by the normal output of that process to find out cost per unit of that process. Advantages of process costing: 1. Costs are be computed periodically at the end of a particular period 2. It is simple and involves less clerical work that job costing

3. It is easy to allocate the expenses to processes in order to have accurate costs. 4. Use of standard costing systems in very effective in process costing situations. 5. Process costing helps in preparation of tender, quotations 6. Since cost data is available for each process, operation and department, good managerial control is possible. Limitations: 1. Cost obtained at each process is only historical cost and are not very useful for effective control. 2. Process costing is based on average cost method, which is not that suitable for performance analysis, evaluation and managerial control. 3. Work-in-progress is generally done on estimated basis which leads to inaccuracy in total cost calculations. 4. The computation of average cost is more difficult in those cases where more than one type of products is manufactured and a division of the cost element is necessary. 5. Where different products arise in the same process and common costs are prorated to various costs units. Such individual products costs may be taken as only approximation and hence not reliable.

EXECUTIVE SU MMARY

From its very beginnings, the Woerle family company has been an export-oriented operation.

The market introduction of the "Happy Cow" processed cheese products in 1981 represented a milestone in the company's export strategy, and the company's first step in the direction of a global export brand.

According to the National Dairy Council, "All cheese is made from milk, but different manufacturing and aging processes are used to produce the array of cheese available today

A manufacturing-oriented company defines how its product are manufactured and rendered. An operation strategy ensures that a company timely, efficiently, and effectively delivers its product or service to the customer.

For manufacturing a cheese There are four components that are used: milk, starter cultures, coagulants and rennet, and finally salt and other additives.

There is no standard method of cheese making; limitless variations exist for all stages of the process: milk treatment, curdling, addition of artificial ingredients and salt for flavor, and aging. This variation in processing accounts for the wide range of cheeses commercially available, differing in texture and flavor.

Objectives of the Study To find out WOERLE FAMILY COMPANY Coverage in various areas. To check the Brand availability of the company products. To compare the Brand with its competitive Brands like Foster Farms Dairy, Agri-Mark Inc., F&A Dairy Products Inc. number of brands available.

 To analyze that which type of cheese are most preferred and demand. To analyze the availability of new WOERLE FAMILY COMPANY products launched in the market.

CHEESE

The word cheese ultimately comes from Latin cases from which the modern word caseinis closely derived. The earliest source is from the proto-Indo- European root kwat-, which means "to ferment, become sour". When the Romans began to make hard cheeses for their legionaries' supplies, a new word started to be used: formaticum, from caseus formatus, or "molded cheese" (as in "formed", not "moldy"). It is from this word that we get the French fromage, Italian formaggio, Catalan formatge, Breton fourmaj and Provenal furmo. Cheese itself is occasionally employed in a sense that means "molded" or "formed".

Cheese is a generic term for a diverse group of milk-based food products. Cheese is produced in wide-ranging flavors, textures, and forms. Cheese consists of proteins and fat from milk, usually the milk of cows, buffalo, goats, or sheep. It is produced by coagulation of the milk proteincasein. Typically, the milk is acidified and addition of the enzyme rennet causes coagulation. The solids are separated and pressed into final form.Some cheeses have molds on the rind or throughout. Most cheeses melt at cooking temperature.
5

Hundreds of types of cheese are produced. Their styles, textures and flavors depend on the origin of the milk (including the animal's diet), whether they have been pasteurized,

the butterfat content, the bacteria and mold, the processing, and aging. Herbs, spices, or wood smoke may be used as flavoring agents. The yellow to red color of many cheeses, such as Red Leicester, is formed from adding annatto. For a few cheeses, the milk is curdled by adding acids such as vinegar or lemon juice. Most cheeses are acidified to a lesser degree by bacteria, which turn milk sugars into lactic acid, then the addition of rennet completes the curdling. Vegetarian alternatives to rennet are available; most are produced by fermentation of the fungus Mucor miehei, but others have been extracted from various species of the Cynara thistle family. Cheese is valued for its portability, long life, and high content of fat, protein, calcium, and phosphorus. Cheese is more compact and has a longer shelf life than milk, although how long a cheese will keep may depend on the type of cheese; labels on packets of cheese often claim that a cheese should be consumed within three to five days of opening. Generally speaking, hard cheeses last longer than soft cheeses, such as Brie or goat's milk cheese. Cheese makers near a dairy region may benefit from fresher, lower-priced milk, and lower shipping costs. The long storage life of some cheese, especially if it is encased in a protective rind, allows selling when markets are favorable. Additional ingredients may be added to some cheeses, such as black peppers, garlic, chives or cranberries.

WOERLE FAMILY COMPANY

Woerle family company from its very beginnings, the Woerle family company has been an export-oriented operation.

While exports were once restricted to the countries of the Austro-Hungarian Empire and Northern Italy during the Habsburg period, Woerle today is highly successful in exporting its wide range of products to over 60 countries around the world.

Outside Europe, the focus of the company's activities is on the Middle East, as well as Japan, South East Asia, Sri Lanka, North Africa and Australia. The market introduction of the "Happy Cow" processed cheese products in 1981represented a milestone in the company's export strategy, and the company's first step in the direction of a global export brand.

The success of Happy Cow and double-digit levels of export growth have since proven Woerle right in its long-term strategy.

The company has successfully made the adjustments necessary for the Happy Cow products to work smoothly with themarket conditions, traditions and requirements of the various export countries.

Such extensive export activities have naturally demanded that Woerle have its finger firmly on the pulse of the global market, that it employ visionary thinking and be oriented to market demands. Despite this, it has managed to maintain the values of a traditional family-run company from the Salzburg region throughout - a powerful combination.

Chapter 2

COMPANY PROFILE

A century of cheese culture as master craft, founded on the concept's underlying the Purity Rule of 1889, began here when Johann Baptist Woerle developed the first Emmental Cheese factory in the Salzburg region.

From its very beginnings, the Woerle family company has been an export-oriented operation.

While exports were once restricted to the countries of the Austro-Hungarian Empire and Northern Italy during the Habsburg period, Woerle today is highly successful in exporting its wide range of products to over 60 countries around the world.

Outside Europe, the focus of the company's activities is on the Middle East, as well as Japan, South East Asia, Sri Lanka, North Africa and Australia. The market introduction of the "Happy

Cow" processed cheese products in 1981 represented a milestone in the company's export strategy, and the company's first step in the direction of a global export brand.

The success of Happy Cow and double-digit levels of export growth have since proven Woerle right in its long-term strategy.

The company has successfully made the adjustments necessary for the Happy Cow products to work smoothly with the market conditions, traditions and requirements of the various export countries.

Such extensive export activities have naturally demanded that Woerle have its finger firmly on the pulse of the global market, that it employ visionary thinking and be oriented to market demands. Despite this, it has managed to maintain the values of a traditional family-run company from the Salzburg region throughout - a powerful combination

WOERLE's Cheese specialties Cheese variety for every taste The WOERLE hay milk cheese product range covers many well-known and popular hard and cut cheese delicacies. In addition, our range of products includes many other excellent sorts from soft cheese and fresh cheese specialties to curd cream cheese and crme fraiche.

Hay milk cheese

Semi-hard cheese

Processed cheese

Cream cheese

Happy Cow

Others

10

CATEGORIES OF HAPPY COW CHEESSE

Slices

Processed Cheese in Portions

Processed Cheese in Tins Processed Cheese Block

Cream Cheese

HAPPY COW PROCESSED CHEESE IN PORTIONS

Happy Cow processed cheese in portions is especially soft and creamy. Exquisite ingredients enhance the cheese, ensuring a mild and piquant flavor.

Flavors:
Champignon, salmon, ham, paprika, cream, natural, pepper, low fat

We i g h t :
Happy Cow portions are available in round boxes of 140g, 120g and 360g.

11

HAPPY COW CHEESE SLICES

High-quality processed cheese slices made using only the finest ingredients.

Flavors:
Natural, light, sandwich, toast, burger, Cheddar, Alpine, Morzzarella, Emmental Cheese, Tilsit, Gouda

We i g h t :
Our Happy Cow slices are offered in 150g and 200g, above that catering packs of 400g and 800g are available. All slices are individually wrapped.

HAPPY COW CREAM CHEESE

This creamy speciality with made from daily fresh milk and is availaible as "natural", "with herbs" or in a low fat version.

We i g h t :

12

It has a smooth and creamy texture and is easy to spread. "Happy Cow" cream cheese is distributed in cups of 150g.

PROCESSED CHEESE IN TINS

Happy Cow processed cheese in tins is especially soft and creamy, making it particularly easy to cut. This cheese is specially designed for consumption in (sub-) tropical countries.

We i g h t :
Our Happy Cow tins are available in the sizes 85g, 113g, 226g and 340g.

PROCESSED CHEESE BLOCK

Finest processed cheese in block form with a perfect consistency to cut and enjoy.

13

Chapter 3 PROCESS OF MAKING CHEESE

RAW MATERIALS USED

There are four components that are used in making cheese: milk, starter cultures, coagulants and rennet, and finally salt and other additives.

MILK

The main ingredient in cheese is milk. Cheese is made using cow, goat, sheep, or a blend of these milks. Milk, can be broken down into its essential parts that play a role in making cheese.

Milk contains fat, protein, enzymes, vitamins, lactose, and ash. The fat in milk helps to provide flavor even when cheese is made from skim milk which has only one percent of fat. The protein in milk exists in two forms: as a suspension/colloidal (casein) and in a soluble form (whey proteins). However, consider the first type of protein as a densely woven mesh rather like a string vest suspended freely in the aqueous phase of milk. As long as the milk remains sweet, this structure is unaffected and the milk remains totally fluid. If the milk acidifies (i.e. goes sour) without the presence of coagulating enzymes, the structure changes quite suddenly at the 'iso-electric point' and a fragile curd is formed that collapses with

the slightest agitation into tiny fragments. A typical example is the fine mass we see when milk sours naturally. By adding rennet, at just the right time before the milk would go completely

14

sour, the structure of the casein is changed radically to form a solid curd called para-casein. This can then be cut with knives and saved to be collected as grains of curd for subsequent processing.

The enzymes in milk come from the cow and have an effect on the quality of raw milk and the ripening of cheese. Milk also contains important vitamins that promote growth such as A, B, D, E, and K. The lactose in milk is the main sugar and provides the energy for the started cutlers. Ash in milk is made up of metallic components such as sodium, potassium, calcium, manganese, iron, and copper; the most important of these is calcium which helps with the growth of bones.

Cheese can be made using pasteurized or raw milk. Cheese made from raw milk imparts different flavors and texture characteristics to the finished cheese. For some cheese varieties, raw milk is given a mild heat treatment (below pasteurization) prior to cheese making to destroy some of the spoilage organisms and provide better conditions for the cheese cultures. Cheese made from raw milk must be aged for at least 60 days to reduce the possibility of exposure to disease causing microorganisms (pathogens) that may be present in the milk.

STARTER CULTURES

Cultures for cheese making are called lactic acid bacteria (LAB) because their primary source of energy is the lactose in milk and their primary metabolic product is lactic acid. There is a wide variety of bacterial cultures available that provide distinct flavor and textural characteristics to cheeses.

Starter cultures are used early in the cheese making process to assist with coagulation by lowering the pH prior to rennet

15

addition. The metabolism of the starter cultures contribute desirable flavor compounds, and help prevent the growth of spoilage organisms and pathogens. Typical starter bacteria include Lactococcus lactis subsp. lactis or cremoris, Streptococcus salivarius subsp. thermophilus, Lactobacillus delbruckii subsp. bulgaricus, and Lactobacillus helveticus.

The acid-producing bacteria can directly suppress disease-producing bacteria under normal conditions. This is why fermented milk products are among the safest foods to take in their natural state.

COAGULANTS AND RENNET

Coagulants and rennet are used to coagulate milk. To coagulate milk is to change it from a fluid to a thickened mass.

The type of coagulant used depends on the type of cheese desired. For acid cheeses, an acid source such as acetic acid (the acid in vinegar) or gluconodeltalactone (a mild food acid) is used. For rennet cheeses, calf rennet or, more commonly, rennet produced through microbial bioprocessing is used. Rennet is a natural complex of enzymes produced in any mammalian stomach to digest the mother's milk, and is often used in the production of cheese. Rennet contains many enzymes, including a proteolytic enzyme (protease) that coagulates the milk, causing it to separate into solids (curds) and liquid (whey). The active enzyme in rennet is
16

called chymosin or rennin but there are also other important enzymes in it, e.g., pepsin or lipase. There are non-animal sources for rennet that are suitable for vegetarian consumption.

One form of rennet is called 'vegetable' rennet which is derived from certain strains of fungi and bacteria. Today, this type of rennet is very popular, reflecting a move towards organic foods, and the manufacture of 'vegetarian cheese'. Substantial amounts are now used at the farmhouse and creamery level. Recently, due to world shortage of calf rennet, recombinant or geneticallyengineered pure chymosin derived from different microorganisms is available on the market, and is currently used by many cheese makers in different countries.

SALT AND OTHER ADDITIVES

The last ingredient of cheese is salt. It is used to create different types of cheese including hard-pressed cheese, brine-salted cheese, soft cheese salting, and blue- veined cheese salting. Salt ads flavor and acts as a natural preservative.

The following additives may also be added to the cheese milk: Calcium chloride is added to replace calcium redistributed during pasteurization. It improves the coagulation properties of the milk. Milk coagulation by rennet during cheese making requires an optimum balance among ionic calcium and both soluble insoluble calcium phosphate salts. Because calcium phosphates have reverse solubility with respect to temperature, the heat treatment from pasteurization causes the equilibrium
17

to shift towards insoluble forms and depletes both soluble calcium phosphates and ionic calcium. Near normal equilibrium is restored during 24 - 48 hours of cold storage, but cheese makers can't wait that long, so CaCl2 is added to restore ionic calcium and improve rennetability. The calcium assists in coagulation and reduces the amount of rennet required

Sodium or potassium nitrate is added to the milk to control the undesirable effects of Clostridium tyrobutyricum in cheeses such as Edam, Gouda, and Swiss.

Because milk color varies from season to season, color may be added to standardize the color of the cheese throughout the year. Annatto, Beta- carotene, and paprika are used. The addition of hydrogen peroxide is sometimes used as an alternative treatment for full pasteurization.

Lipases, normally present in raw milk, are inactivated during pasteurization. The addition of kid goat lipases is common to ensure proper flavor development through fat hydrolysis.

18

MANUFACTURING PROCESS

There is no standard method of cheese making; limitless variations exist for all stages of the process: milk treatment, curdling, addition of artificial ingredients and salt for flavor, and aging. This variation in processing accounts for the wide range of cheeses commercially available, differing in texture and flavor.

19

Although hundreds of specialized techniques lend different types of cheese their distinct flavors and characteristics, three basic steps are common to all cheese making. First, proteins in milk are transformed into solid lumps called curds. Second, the curds are separated from the milky liquid, called whey, and shaped or pressed into molds. Finally, the shaped curds are ripened using a variety of different aging and curing techniques.

TREATMENT OF MILK

Like most dairy products, cheesemilk is often standardized before cheese making to optimize the protein to fat ratio to make a good quality cheese with a high yield. The milk may then be subjected to a subpasteurization treatment of 63-65C for 15 to 16 sec. This thermization treatment results in a reduction of high initial bacteria counts before storage. It must be followed by proper pasteurization. While high temperature short time pasteurization (72 C for 16sec) is often used, an alternative heat treatment of 60 C for 16 sec may also be used. This less severe heat treatment is thought to result in a better final flavor cheese by preserving some of the natural flora. If used, the cheese must be stored for 60 days prior to sale, which is similar to the regulations for raw milk cheese. Raw milk cheeses must be aged for at least 60 days to reduce the possibility of exposure to disease causing microorganisms (pathogens) that may be present in it. Milk is then cooled after pasteurization or heat treatment to 90F (32C) to bring it to the temperature needed for the starter bacteria to grow. If raw milk is used the milk must be heated to 90F (32C).
20

The acidification can be accomplished directly by the addition of an acid like vinegar in a few cases (paneer, queso fresco), but usually starter bacteria are employed instead. The basis of cheese making relies on the fermentation of lactose by LAB. LAB produce lactic acid which lowers the pH and in turn assists coagulation, promotes syneresis (extraction or expulsion of a liquid from a gel), helps prevent spoilage and pathogenic bacteria from growing, contributes to cheese texture, flavor and keeping quality. LAB also produce growth factors which encourage the growth of non-starter organisms, and provides lipases and proteases necessary for flavor development during curing.

Industrially, the lactic acid level in the milk is increased by adding a starter culture of Streptococci, Lactococci, or Lactobacilli to the milk and fermenting at 32C for 10 to 75 minutes. Swiss starter cultures also include Propionibacter shermani, which produces carbon dioxide gas bubbles during aging, giving Swiss cheese its holes. In addition to biologically converting the lactose present in the milk to lactic acid, these strains of microorganisms also greatly affect the eventual flavor of the final product. Thus, the selection of a suitable strain, the amount of starter culture, and the length of pre-ripening, is of the utmost importance in creating the subtle differences in the final color and aroma that distinguishes an expensive cheese from a cheap one. The starter cultures and any non-starter adjunct bacteria are added to the milk and held at 90F (32C) for 30 minutes to ripen. The ripening step allows the bacteria to grow and begin fermentation, which lowers the pH and develops the flavor of the cheese.

After inoculation with the starter culture, the milk is held for 45 to 60 min at 25 to 30 C to ensure the bacteria are active, growing and have developed acidity. This stage is called ripening the milk and is done prior to renneting.

21

Homogenization is not usually done for most cheese milk. It disrupts the fat globules and increases the fat surface area where casein particles adsorb. This results in a soft, weak curd at renneting and increased hydrolytic rancidity.

COAGULATION

Coagulation is essentially the formation of a gel by destabilizing the casein micelles, causing them to aggregate and form a network which partially immobilizes the water and traps the fat globules in the newly formed matrix.

Curds are formed when an enzyme called rennin is stirred into milk. Rennin encourages casein, one of the proteins in milk, to solidify and clump together, or coagulate. Rennet contains the enzyme chymosin which converts k-casein to para-kappa-caseinate (the main component of cheese curd) and glycomacropeptide, which is lost in the cheese whey. Rennin or chymosin is found in rennet, and it aids coagulation only if the milk is slightly acidic, as it is when it becomes sour. Rather than waiting for milk to sour, cheese makers speed up the process by warming the milk and adding specialized bacteria that convert the sugars found in milk to lactic acid, creating the acidic environment necessary for casein coagulation. As the case in clumps together, it traps fat globules and some of the milky liquid inside the clumps, forming moist, nutritious curds.

22

CURDLING

A required step in cheese making is separating the milk into solid curds (the thick precipitate) and liquid whey (the thin watery residue). At this point, the cheese has set into a very moist gel. When the curds have reached the desired moisture and acidity, they are separated from the whey. The whey may be removed from the top or drained by gravity. The curd-whey mixture may also be placed in moulds for draining.

Some soft cheeses are now essentially complete: they are drained, salted, and packaged. For most of the rest, the curd is cut into small cubes. This allows water to drain from the individual pieces of curd as well as it shortens the distance and increases the available area for whey to be released. The curd pieces immediately begin to shrink and expel the greenish liquid called whey. This syneresis process is further driven by a cooking stage. The increase in temperature causes the protein matrix to shrink due to increased hydrophobic interactions, and also increases the rate of fermentation of lactose to lactic acid. The increased acidity also contributes to shrinkage of the curd particles. The final moisture content is dependent on the time and temperature of the cook stage. This is important to monitor carefully because the final moisture content of the curd determines the residual amount of fermentable lactose and thus the final pH of the cheese after curing.

Some hard cheeses are then heated to temperatures in the range of 3555 C (95131 F). This forces more whey from the cut curd. It also changes the taste of the finished cheese, affecting both the bacterial culture and the milk chemistry. Cheeses that are heated to the higher
23

temperatures are usually made with thermophilic starter bacteria which survive this stepeither lactobacilli or streptococci.

FLAVOR ADDITION

After the curd is separated from the whey, salt, seasoning, and other curing and flavoring ingredients are added. Flavor addition aids in curing the cheese. The curd is wrapped in cheese cloth and pressed for 12 to 18 hours to remove the additional whey soaked in the curd. The curd hardens and forms a cheese block in the shape of the press as the whey is squeezed out. Finally, the cheese block is dried for 6 hours.

Salt has roles in cheese besides adding a salty flavor. It preserves cheese from spoiling, draws moisture from the curd, and firms the cheeses texture in an interaction with its proteins. Some cheeses are salted from the outside with dry salt or brine washes. Most cheeses have the salt mixed directly into the curds. These techniques may influence a cheese's texture and flavor.

Some examples: Stretching: (Mozzarella, Provolone) the curd is stretched and kneaded in hot water, developing a stringy, fibrous body.

24

 Cheddaring: (Cheddar, other English cheeses) The cut curd is repeatedly piled up, pushing more moisture away. The curd is also mixed (or milled) for a long time, taking the sharp edges off the cut curd pieces and influencing the final product's texture.

Washing: (Edam, Gouda, Colby) The curd is washed in warm water, lowering its acidity and making for a milder-tasting cheese.

COMPRESSION OF CURD

Compressing the curd shapes the cheese and eliminates more whey. Most cheeses achieve their final shape when the curds are pressed into a mold or form. The harder the cheese, the more pressure is applied. The pressure drives out moisture the molds are designed to allow water to escapeand unifies the curds into a single solid body. Curds of nearly all cheeses are salted by stirring the salt directly into the curds or by rubbing salt or a saltwater solution, called brine, onto the curd surface. Salt pulls moisture from the cheese, but more importantly, it acts as a preservative and slows down the final step of cheese makingthe ripening.

25

AGING

During the ripening process, microbes such as bacteria slowly change the composition of the curds, creating cheeses with distinct flavors, textures, and aromas. The kinds of microbes used, the temperature and humidity conditions of the ripening environment, and the duration of the ripening process, all contribute to the final characteristics of the cheese.

Some cheeses have additional bacteria or molds intentionally introduced before or during aging. In traditional cheese making, these microbes might be already present in the aging room; they are simply allowed to settle and grow on the stored cheeses. More often today, prepared cultures are used, giving more consistent results and putting fewer constraints on the environment where the cheese ages.

In some cheeses, the bacteria added to create the acidic environment necessary for curd formation continue to ripen the cheese as well. In Swiss cheese, for example, these bacteria produce gas bubbles during ripening, creating its characteristic holes, or eyes. In other cases, microbes are added to the shaped curd. For example, a blue-green mold called Penicillium roqueforti is used to ripen cheeses such as Roquefort and Gorgonzola. This special mold creates bluish-green veins in the cheese and a characteristic sharp flavor and creamy texture. Other cheeses, such as Brie and Camembert, are ripened by bacteria rubbed on the outer surface of the

26

cheese. The bacteria slowly work their way into the interior of the cheese, creating a soft, pungent interior and leaving a powdery, edible white rind on the outside.

Ripening usually takes place in carefully controlled environments. Conditions are often designed to mimic the natural environments of the ripening microbes. The moisture-laden air prevents the cheese from drying out as it ripens. Temperatures are kept cool, not only to encourage the activity of the ripening bacteria but to inhibit the growth of harmful bacteria that could spoil the cheese. The amount of time that cheeses are allowed to ripen, or age, also contributes to their final character. Generally, longer curing or aging process gives more pronounced flavor, color, and texture of the finished product.

FINISHED CHEESE

A newborn cheese is usually salty yet bland in flavor and, for harder varieties, rubbery in texture. These qualities are sometimes enjoyedcheese curds are eaten on their ownbut normally cheeses are left to rest under controlled conditions. This aging period lasts from a few days to several years. As a cheese

ages, microbes and enzymes transform texture and intensify flavor. This transformation is largely a result of the breakdown of casein proteins and milk fat into a complex mix of amino acids, amines, and fatty acids.

Although a higher temperature promotes faster curing, there is also a higher chance of spoilage due to undesirable microbial activities at elevated temperatures. Prior to aging, the cheese block is usually wrapped tightly to exclude air and microbial contaminants from entering and spoiling
27

the cheese. One way to accomplish this is to dip the cheese block in a pot of melted wax. During the aging process, many complicated microbial and chemical actions continue to take place in the cheese block. Thousands of techniques exist to develop various distinctive flavors. These reactions are not well characterized; thus, cheese making is still an art rather than a science. Depending on the technique employed, this final aging process takes anywhere from 2 weeks to 6 months.

Cheese maybe cut and packaged into blocks or it may be waxed.

28

Chapter4 SWOT ANALYSIS

SWOT analysis (alternately SWOT Matrix) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500 companies. Setting the objective should be done after the SWOT analysis has been performed. This would allow achievable goals or objectives to be set for the organization.

29

Strengths: characteristics of the business, or project team that give it an advantage over others

Weaknesses (or Limitations): are characteristics that place the team at a disadvantage relative to others

Opportunities: external chances to improve performance (e.g. make greater profits) in the environment

Threats: external elements in the environment that could cause trouble for the business or project

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated. Users of SWOT analysis need to ask and answer questions that generate meaningful information for each category (strengths, weaknesses, opportunities, and threats) in order to maximize the benefits of this evaluation and find their competitive advantage.

30

SWOT ANALYSIS

STRENGTHS

More than hundred years of experience Double digit export figure in south Asia & African countries. Pioneer in making world class cheese. Favorable climate to produce best cheese Best quality of cow Technological advancement in cheese making

WEAKNESSES

High energy cost involved for producing cheese Poor advertisement on cheese. Stringent and regressive government rules with different taxation across various countries. Product mix limited should have more products such as jams & cream etc

31

OPPORTUNITIES

Large domestic market with increasing disposable income.

Population changing lifestyle accepting new trends.

Export potential to rest of the world.

Growing demand for first class cheese

THREATS

New players entering market at fast pace.

Agri-Mark Inc., Berner Foods Inc. increasing their operations world wide

Better quality.

32

CHAPTER 5 FINDINGS / SUGGESTIONS&CONCLUSION

FINDINGS / SUGGESTIONS

Improvement in fertility of land

Improvement in level of resistance of plants through natural pest control

Improved performance of animals by health and longer life

Increased work force

33

CONCLUSION

I conclude that WOERLE FAMILY COMPANY is the first preference of both the customers and retailers (organized and unorganized both) because of its price and brand image. Brand WOERLE FAMILY COMPANY dominates the volume-dominated cheese market. Even in todays time when multinationals are beefing up their operations and trying to change the dynamics of the market, WOERLE FAMILY COMPANY numerous positions is unchallenged. Brand HAPPY COW CHEESE is iconic and has evolved over the years. Trust, relevance, affordability are it hallmarks, which have withstood pressures from the hyper-competitive market place.

The WOERLE FAMILY COMPANY cheese brands HAPPY COW CHEESE enjoy a strong imagery and appeal amongst consumers across the world. WOERLE FAMILY COMPANY is now lagging in services to retailers because of improper supply and distribution in some areas and competitors taking advantage of these points the success of Happy Cow and double-digit levels of export growth have since proven Woerle right in its long-term strategy. Operational strategy describes a companys operations including plans for ordering, storing, producing, outsourcing, and selling

34

BIBLIOGRAPHY
Reference books Steven M. Bragg - cost accounting, 3rd Ed Costing ,10th Ed Cost Management - Saravana Prasad Costing - Saxena & Vashish

WIBLIOGRAPHY

www.woerle.at Cheese. (2006). History made every day. Retrieved January 4, 2010 from http://www.history.com/encyclopedia.do?articleId=205380 Cheese Production. Retrieved December 21, 2009 from

http://www.milkfacts.info/Milk%20Processing/Cheese%20Production.htm Cheese Production Process. Cheese. Retrieved January 4, 2010 from

http://www.britannica.com/EBchecked/topic-art/108310/110232/Theprocess http://www.cheese.com/ http://www.foodsubs.com/Chefresh.html

cheese-making-

35

36