Villgrater Nature Products

Best Practice

Region
Villgratental, Eastern Tyrol
In the territorial limits of the Alpine Convention.
Country
at (Austria)
Term 2012-05-21
Topics

Short description
Duration of the project: Start for the meat production: 1986, Start for the wool production: 1991. The project is planed on a continuing basis. The project Villgrater Nature Products was instigated by Josef Schett, the driving force of the project. All products and networks concentrate on the regional resource of the Villgratental: sheep. For the processing and marketing of sheep products, the Josef Schett Limited Partnership was founded. The product innovation – woolin, insulation material made from sheep wool – is produced and marketed by the Woolin Ltd. in cooperation with Swarovski. Further activities resulting from the project Villgrater Nature Products comprise the marketing of huts on pastures (“Holidays in Freedom”), creation of hiking paths (smuggler routes to Italy), excursions, developing health beds, a farmer shop selling regional agricultural specialities and much more.  Is there made use of endogenous resources? Which ones? - Regional sheep (lamb, wool, milk) and wood (health beds): in the meantime the whole Austrian sheep wool production is processed within the region. - Regional agricultural products  What is the specific relevance of the results for the Alps? Expansion of the sheep breeding in the region itself and other Alpine regions. Alpine regions provide perfect conditions for the sheep breeding which represents a sustainable and environmentally-sound form of cultivation (conservation of pastures, reduction of avalanches). Furthermore, sheep products fit the current wellness and health trend.

Projekt Executive Mr Josef Schett
Villgrater Nature Products Josef Schett Limited Partnership
Innervillgraten 16, 9932 Innervillgraten,
office@villgraternatur.at
0043 / 4843 / 5520
Project executive
Main responsibilities: - Quality check, product development. - Marketing of own and regional agricultural products. - Coordination of activities and instigating new projects. - Strengthening the cooperation between the participants (tourism, agriculture, etc.). - Increasing the region’s attractiveness by projects within the cooperation agriculture – tourism – gastronomy.


Participants
Participants: - 40 regional farmers in the lamb production, woll production and the production of regional specialities (honey, sheep cheese, etc.) - Josef Schett Limited Partnership Partner for the distribution of the products of Villgrater Nature: - 9 different retailing companies in Austria for the distribution of bedding and insulating materials - 2 franchisees (Villgrater Nature Products Shop): Tyrol and Upper Austria. - Reference customers contributing to the marketing of the products, e.g. Restaurant Gannerhof (lamb, mattresses made of sheep wool and insulation), Nature Hotel Waldklause (mattresses made of sheep wool and insulation), Schafferalm (mattresses made of sheep wool), Schuistlhof (bedding and insulation). Intensive cooperation focusing the regional products exist with: - Regional farmers: buying regional, agricultural products and specialities from farmes and selling them in the regional shop, lamb production. - Regional gastronomy: processing regional lamb and sheep cheese (netwrok agriculture – gastronomy – tourism). - Regional hotel industry (the region has a strong initiative “Farm Holidays”): common exhibition in summer 2005, equipping a hotel in the Ötztal and the hotel Gannerhof in Innervillgraten with Villgrater Nature beds and insulation (information and coupons for the guests in the hotel’s rooms (incentive: the hotel receives a premium if a guest buys Villgrater Nature products) as marketing activity) - Regional industry: e.g. carpenters (health beds), retailers for building material, construction industry, etc. External cooperations: - Business consultant agency Kollar (Innsbruck) and the agency Zinell & Madritsch in the development of the project, evaluation and markting activities. - Butchery in the marketing of meat - Austria Tourism Eastern Tyrol (e.g. marketing of “Holidays in Freedom”, Oberstalleralm) - Regional travel organisation: Schmidhofer Autounternehmen GesmbH - Club Eastern Tyrol (platform for people from Eastern Tyrol) - Schmidhofer Autounternehmen GesmbH, Reiseunternehmen in Innervillgraten - Tax advisor - Economic Chamber of Tyrol and Chamber of Agriculture (networking, support in the application for funds) Initiatives and platforms in which Villgrater Nature participates at present: - Association Competency Network Health in Eastern Tyrol (Josef Schett is chairman): finding, using, connecting and marketing of resources within the scope of health and wellness. Safeguarding working places within the core competency health and instigating the foundation of companies. - Regional culture: Castle Anras (has a shop selling Villgrater Nature Products: „Kornkasten“) - City Market Lienz - Association Nature from Eastern Tyrol.  Key person Josef Schett is the initiator and driving force of the project: honorary commitment, setting new impulses and instigating new projects. On the other side, it is very risky, if a project depends strongly on one person.  Project trigger: Josef Schett had to decide on his future: taking over the farm of his parents or working further in a bank. The farm concentrated on the milk production and, therefore, did not yield poorly. Josef Schett recognised the potential of lamb (concerning production conditions and market trend), analysed the market and took the risk to build-up a lamb production.
Objectives
- Generating regional value added in an outlying, rural and alpine region with a weak regional economy - Safeguarding and creating working places within the region - Safeguarding existing products and developing new products to generate economic value added for the regional agriculture - Integrating tourism and gastronomy in the project focusing the health and wellness trend
Activities
- Marketing and processing sheep products within the region: sheep cheese, sheep wool, lamb, etc. - Building-up a cross-regional distribution network for the regional products: franchisees, distribution partners, etc. - Cooperate with the regional gastronomy and tourism: menu containing regional specialities, positioning as culinary tourism destination. A touristic project concerning the arriving travel groups is planned at present: currently travel groups are not provided with regional products and specialities when they stop for a bite to eat: cooperation with regional farmers offering regional specialities as snack (“Jause”) to transfer the region’s uniqueness to the tourists. Creating culinary travel experiences. - Pubic relations and marketing activities (Villgrater Sheep Farmer Days, cooperation with Austria Tourism Eastern Tyrol, etc.) - Expansion of sheep wool processing: Woolin Ltd. In cooperation with Swarovski, entering the markets outside Europe - Product development: sheep wool as insulation - Association Competency Network Health in eastern Tyrol - Regional platform Association Nature from Eastern Tyrol: network of 12 companies in Eastern Tyrol aiming at supporting each other and common marketing initiatives for regional products, e.g. exhibition in Vienna and Castle Schönnbrunn. A shop (“Osttirolladen”) in Vienna is planned for winter 2005. - Developing tourism offers focusing hiking: hiking on the routes of smugglers between Eastern Tyrol and Italy, production of a book with information on these routes. - “Alpdorf Stalleralm”: revitalisation of huts on pastures and marketing the tourism offer “Holidays in Freedom”. This project represents an important additional income for the regional farmers.
Process
Preparatory phase: revitalisation of huts on pastures (Alpdorf Stalleralm). The spartan equipped huts are rented out to tourists („Holidays in Freedom“) and represent an important additional income for the regional farmers. The project was supported and accompanied by the Regional Consultancy Ltd. ÖAR (consultant Hans Schönegger). 1. Phase (1986) – building-up the marketing of lamb and sheep cheese: foundation of the Villgrater Frischlamm Civil Law Association by 3 farmers of Eastern Tyrol. The process was supported by the Regional Consultancy Ltd. ÖAR, the University of Innsbruck conducted a market analysis. The company bought an pasture for the production location and integrated partners in the project (gastronomy). 2. Phase (1987) – testing the capacity of sheep wool as insulation because the lamb processing produced a great amount of sheep wool as spin-off product. Cooperation with a research institution in Switzerland (1988) and starting with the preparatory work for the realisation. 3. Phase (since 1991) – expansion of the sheep wool and lamb processing: replace the Villgrater Frischlamm Civil Law Association by the Villgrater Nature Products Limited Partnership because it was not possible to sell beddings and insulation material under the label “Frischlamm” (fresh lamb). In 1992 Villgarter Nature founded a production location for the processing of sheep wool in Innervillgraten. The production location included the administration and a shop in which 30 regional farmers sell their products. 4. Phase - Development of a health programme: mattresses, a healthy slatted frame and a healthy bed was developed in cooperation with Prof. Willi Dungl and regional carpenters (are responsible for the production). 5. Phase (2003) – entering markets outside Europe with insulation made of sheep wool: the Woolin Ltd. was founded in cooperation with the company Swarovski. Objective: processing the total Austrian production of sheep wool (320.000kg). 6. Current phase – extension of marketing activities and markets for Villgrater Nature Products and regional specialities: shop in Vienna (“Osttirolladen“) is planned for winter 2005.
Results
- 8 working places (in the processing and the management) were created - about 600 lambs are processed for the gastronomy - processing annually 20 to 70 tonnes of sheep wool within the region - Awareness for cross-sectoral cooperation was created within the region and the agriculture - Tourism: positioning as culinary tourism destination, pastures (“Holidays in Freedom”) - Selling sheep products in whole Austria and Europe - Product innovation: sheep cheese, woolin, insulation material - Expansion: Woolin Ltd. (in cooperation with the company Swarovski) ought to enter the markets outside Europe - Awards: ISO 9001 certification, A.K.T.-Vision 1991 (award for cooperation projects within the scope of agriculture, culture and tourism) for the revitalisation of the Alpdorf Stalleralm, Austrian Agricultural Marketing Award, BDO Auxilia Award 1999 (for projects which are economically and ecologically profitable), IBO-Label 2002 for the insulation material, Qality Label natureplus for the product Woolin, ISO 9001 certification. Success Factors: - Key person Josef Schett: his commitment and inventive talent. - Support of the Regional Consultancy Ltd. ÖAR in the beginning of the project: lead to the professional implementation of the project, instigated the cooperation with the University of Innsbruck - Luck: Josef Schett recognised the market trends in time (in the beginning: agriculture faced a surplus production of milk and beef – sheep products were hardly produced by Austrian farmers, health and wellness trend). - The participants were prepared to take risks.
Evaluation
- Annual financial statements of the regional companies: showing information on the efficiency and sustainability of the companies. - Market analysis, feasibility study and collection of market data at the beginning of the project: cooperation with the University of Innsbruck - There are constantly evaluations (sales, markets, trends, etc.) in order to recognise new market trends, employ market potentials and implementing new projects: Josef Schett Limited Partnership (administration), support of the business consultancy Koller and the agency Zinell & Madritsch. This evaluations is for the belief and the trust of the participants important too: showing results and proofing prosperities.
Difficulties
- At project start: no experience in sheep breeding and production of lamb, wool and sheep cheese. Hard work, some luck and taking a lot of risk helped Josef Schett to overcome this difficulties. - Creation of cooperations: regional farmers did not dare to join and cooperate in the sheep breeding until the project was implemented and showed first prosperities. Meetings, information, consultancy and constant motivation was necessary to convince the regional farmers. - Agricultural production: farmers did not produce in line with the market. Solution: informing and convincing the farmers, showing the benefits (fair price for high quality). - The product development was difficult but the various awards and certifications demonstrate that this difficulties may be overcome by hard work and persistency.
Financial backer
Josef Schett Limited Partnership finances from own resources. The company received a small subsidy from the Province of Tyrol in the beginning (1986). Woolin: Foundation of the Woolin Ltd. in cooperation with the Swarovski company. Touristic project focusing the culinary provision of travel groups: An application for a promotion from the EU Initiative Interreg is intended (integrating partners from South Tyrol).
Source of information
Competition
Participant at the 2005 Future in the Alps competition
Homepage
http://www.villgraternatur.at http://www.woolin.at
Comments
Impact on nature and environment
- Alternative tourism offer: the Villgratental does not offer the typical alpine tourism product: winter sports. It concentrates on the touristic value of its pastures: hiking and positioning as culinary tourism destination (important partner for this positioning is the hotel Gannerhof). - Sheep breeding represents a sustainable and environmentally-sound form of cultivation (conservation of pastures, reduction of avalanches). - Exploiting the region’s agricultural potential by concentrating on sheep breeding.
Economic value added
- Safeguarding the farmers’ existence: secure sales (a definite buyer) for lamb, fair price for high quality, selling regional agricultural specialities. - Creating 8 working places (administration and processing of sheep wool) - Multiplier effects to the construction industry (insulation materials), regional industry (carpenters within the region produce health beds), tourism (gastronomy and hotel industry use and process regional products, hotels are equipped with health beds and mattresses, additional income for farmers due to the revitalisation of the Alpdorf Stalleralm) - An excursion tourism has developed within the region: 80 excursions per year (from South Tyrol, South Germany and Switzerland) - Processing 50.000 – 70.000 kg Austrian sheep wool per year (accounts for 20% of the Austrian total production): insulation material, mattresses, etc. - Shop selling regional agricultural specialities produced by 30 regional farmers - Expansion and entering new markets: the produced insulation material is sold on the European market. Josef Schett founded the Woolin Ltd. for the entry of markets outside Europe. The opening of an Eastern Tyrol shop in Vienna is planed for winter 2005.
Socio-cultural value added
- Increased self-confidence of the regional farmers contributing to their willingness to cooperate and instigate new projects. They learned to act as entrepreneurs and to respond to market trends and developments and thereby safeguarding their own existence. - The project encouraged a climate for cooperation within the region: agriculture, tourism and gastronomy. - Special relevance for women: woman farmers receive own income by selling their agricultural products (honey, herbs, sheep cheese) in the Farmer Shop. Josef Schett ensures that they receive the money directly, i.e. they have not to factor their products (enabling their husbands to collect the proceeds). This strengthens the self-confidence of women and raises their interest in participating in the project.
Innovative content
- The farmers’ new autonomy: they learned to act as entrepreneurs and to respond to market trends and developments and thereby safeguard their own existence. Furthermore, this ensures that the farmers bear upon their products (quality, uniqueness, revitalisation of handicraft) - Innovations within the scope of processing and marketing of lamb and sheep cheese (1986): Marketing concept, market analysis and professional market development, cooperation between agriculture and research (University of Innsbruck) - Product innovation: insulation material made from sheep wool (woolin) - Developing an alternative alpine tourism offer: hiking, pastures, culinary
Good governance
The project is managed by the market according to the law of supply and demand. The farmers have to respond to the market demand and produce on line with the market. Josef Schett puts emphasis on the importance of a good working atmosphere in his company: regular meetings, discussion on problems and developments altogether. The pillars of the corporate philosophy are cooperation, acting in a professional way and commitment. The cooperation with the farmers is ensured and promoted by regular meetings: exchange of ideas, information and know how, discussion of problems and decisions, etc.
PR impact
- Villgrater Sheep Farmer Days: Open day for regional people and tourists representing an opportunity to get to know the project and ist participants. Demonstration the work behind the Villgrater Nature Products. - Press releases in local newspapers (Tiroler Tageszeitung, Osttiroler Bote, Kleine Zeitung) and national newspapers (Standard, Kronenzeitung, News, etc.). - Homepage: news, history of Villgrater Nature, Links and online-shop - 2 Villgrater Nature Product stores in Tyrol and Upper Austria - reference customers (gastronomy, hotels and others) - The guests receive coupons for Villgrater Nature Products in the hotels (20% off, the hotel receives a premium for the recommendation) The impacts of this activities appear in the rising number of excursions (70 – 80 travel groups per year).
Multiplier effect / networking
The exchange of know how boosts the regional network: direct support in the development of similar initiatives in other regions (presentations, excursions, consultancy, exchange of experiences, etc.), e.g. in Carinthia. The existence of further regions concentrating on sheep increase the publicity for the product and, therefore, has some marketing effect for Josef Schett. In addition, Villgrater Nature supports direct marketing initiatives, e.g. City Market Lienz or the Monastery Anras (Kornkasten).
Transferability
The idea may be transferred to other rural, alpine regions, as this regions provide perfect conditions for the sheep breeding. Prerequisites: - willingness to cooperate within the region: cooperation in the production and the marketing of products. - Venturesomeness and professional organisational structures - Existence of an adequate target group (high standard of living, health-conscious, ready to pay for high quality products) to secure sales.
Further information
The beginnings
 
From the good sheep...
 
Press kit
 
Programme - excursions
 
Woolin
 
Farmers shop
 
Woolin - press release
 
Villgrater Nature Health Bed
 
Bread and cheese
 
Lamb and cheese
 
Logo Villgrater Natur
 
Villgrater Nature bedding
 
Josef Schett
 
Woolin - Production plant
 
Woolin - production
 
Logo Woolin
 
Interview Villgrater Nature Products