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“maximize material and energy efficiency”, which still remains as the dominating
archetype. It also means that from a sustainability-oriented innovation perspective,
they are focusing on operational optimization (“doing more with less”).
The development of their sustainable business model is underway. A minor part
of their business model fits the archetype “deliver functionality, rather than ownership”. Further, the managers have continuously developed their stewardship role
over the last years (which could be seen in the vision of the company). The company’s sustainable business model is moving towards organizational transformation
(“doing good by doing new things”).
5.5.2 Gäsene Dairy
Gäsene Dairy is a dairy cooperative company owned by 28 small- and mediumsized milk farms (between 30 and 500 milk cows on each firm). The dairy’s main
business is production and selling of high-quality cheese.
The dairy was founded in 1930, when milk prices were low and it was difficult
for the producers to get good enough prices. Farmers in one neighbourhood developed a new business model before the concept was even conceptualized. They
joined together in a cooperative association and started their own dairy, which produced and sold milk, cheese and other dairy products. The vicinity was important
for the founders of the dairy, and it is still important today. All the milk are produced
on farms which are situated within 25 minutes travel time from the dairy. Most of
the milk and cheese are sold in groceries in southern Sweden. A minor part is sold
directly to end consumers at the dairy. The quality of their products, based on sustainability and closeness, has made their brand well-known. Last year, the dairy had
over 100 bus loads with visitors, exceeding 23,000 visitors. The dairy has recently
decided to use biofuel for heating its premises. The surplus heat will be used for
heating of the neighbouring municipality senior housing.
Since the dairy products create larger value for end customers than the products
sold by large international processing companies, the dairy company can sell their
products at higher prices. Consequently, the farms owning the dairy have larger
revenues than other farms which deliver to the large international processing
companies.
The business model of the company as such has not changed much since the
company was founded, but the development of society has renewed it. From the
start, the business model was based on economic necessity but also on the founding
farmers’ stewardship perspective. A business that was regarded as out of date has
now become both modern and sustainable. One of the owners says:
We have been out of fashion for 70 years, but now we are modern and in the front again.
Since sustainability became an important societal concept during the last decade,
the company focuses even more on sustainability. The investment decision regarding the biofuel heater, which will benefit both the company and the senior housing,
5 Development of Sustainable Business Models for Innovation in the Swedish…
“maximize material and energy efficiency”, which still remains as the dominating
archetype. It also means that from a sustainability-oriented innovation perspective,
they are focusing on operational optimization (“doing more with less”).
The development of their sustainable business model is underway. A minor part
of their business model fits the archetype “deliver functionality, rather than ownership”. Further, the managers have continuously developed their stewardship role
over the last years (which could be seen in the vision of the company). The company’s sustainable business model is moving towards organizational transformation
(“doing good by doing new things”).
5.5.2 Gäsene Dairy
Gäsene Dairy is a dairy cooperative company owned by 28 small- and mediumsized milk farms (between 30 and 500 milk cows on each firm). The dairy’s main
business is production and selling of high-quality cheese.
The dairy was founded in 1930, when milk prices were low and it was difficult
for the producers to get good enough prices. Farmers in one neighbourhood developed a new business model before the concept was even conceptualized. They
joined together in a cooperative association and started their own dairy, which produced and sold milk, cheese and other dairy products. The vicinity was important
for the founders of the dairy, and it is still important today. All the milk are produced
on farms which are situated within 25 minutes travel time from the dairy. Most of
the milk and cheese are sold in groceries in southern Sweden. A minor part is sold
directly to end consumers at the dairy. The quality of their products, based on sustainability and closeness, has made their brand well-known. Last year, the dairy had
over 100 bus loads with visitors, exceeding 23,000 visitors. The dairy has recently
decided to use biofuel for heating its premises. The surplus heat will be used for
heating of the neighbouring municipality senior housing.
Since the dairy products create larger value for end customers than the products
sold by large international processing companies, the dairy company can sell their
products at higher prices. Consequently, the farms owning the dairy have larger
revenues than other farms which deliver to the large international processing
companies.
The business model of the company as such has not changed much since the
company was founded, but the development of society has renewed it. From the
start, the business model was based on economic necessity but also on the founding
farmers’ stewardship perspective. A business that was regarded as out of date has
now become both modern and sustainable. One of the owners says:
We have been out of fashion for 70 years, but now we are modern and in the front again.
Since sustainability became an important societal concept during the last decade,
the company focuses even more on sustainability. The investment decision regarding the biofuel heater, which will benefit both the company and the senior housing,
5 Development of Sustainable Business Models for Innovation in the Swedish…