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11 November, 2009 12:54:34 | in society

A History of Success: Lácteos Tongod

Lácteos Tongod in Cajamarca, PeruThis article is a continuation of a series of articles about the NGO TechnoServe.

To read the first article in the series, as well as the history of TechnoServe, click here.

TechnoServe works with the rural poor to improve their quality business ideas in potential markets.

In today's article, we will focus on the story of Mr. Eligio, and his dairy business in the region of Cajamarca.

Read on to hear about his challenges, and precisely why TechoServe was able to lead him and his business to financial success.


Lácteos Tongod in Cajamarca, PeruIn 1980, Mr. Eligio started providing fresh milk to a group of people who produced Swiss cheese in Tongod (a place in Cajamarca) in his house that he rented as production plant. However, after a year, the producers of Swiss cheese went to another place, and Mr. Eligio decided to continue with the production on his own, as he had learned the production process and he needed to look for a new income source that could assure his family’s stability.

Most of the production was sent to Lima. However, due to informal dealings with the distributors in Lima and the instability of orders, sales dropped gradually. Also, the increasing competition in Tongod (which was caused by the success of Mr. Eligio) made it increasingly difficult for him to market his cheese. His market in Tongod dropped and the business was devastated.

Lácteos Tongod in Cajamarca, PeruFrom 1991 to 1996, Mr. Eligio was elected Mayor of Tongod and neglected his business. After this period of community service, he resumed the milk production. In 2001, he made the radical decision to sell his production plant located in Tongod in order to invest such money in setting up a new plant in Cajamarca. He chose Cajamarca because it had a developed market and more possibilities to extend his clients’ portfolio.

In March 2008, TechnoServe started providing consultancy to Mr. Eligio’s Lacteos Tongod through the project Development of Business Competitiveness of Agricultural and Agro-Industrial Sectors in Cajamarca.

Lácteos Tongod in Cajamarca, PeruAt present, Tongod produces yogurt, butter, custard, liquid fudge dessert, Dambo, Swiss, green, mozzarella, greasy and ecological cheese. Its highest income comes from selling greasy cheese, followed by Swiss cheese. The average increase in sales from the time of consultancy is 82.65%

At the beginning of the consultancy service, the company had four workers.  At the end of the consultancy service, Tongod created jobs, has a health inspection registration, bar codes, and accounting and financial records.
 
The company was able to improve its labels and its sales strategy, and it now has a strategic plan which proves they are aware and assume its vision, missions and objectives of success.


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