Gealtan AB was founded in 1994 and is owned by reindeer herder Benny Jonsson in Idre. Benny has been in business since 1980, supplying Swedish and foreign customers with high quality reindeer skins. Through contact with the Enterprise Europe Network in Dalarna, they have entered the Chinese market.
The business idea is mainly based on buying raw hides that are sent to tanneries for tanning. When they come back, Benny classifies them and some are treated with brushes to make them water repellent and others become raw material for various crafts. Many skins are used as ornamental skins or for various outdoor activities and because the fur strands are hollow and air-filled, the skins are very warm.
Equestrian sports are also a big market. Benny sells a lot of skins in equestrian sports, where they are used as vajlocks. Here, the air-filled fur strands are an advantage, as they create an insulating and phenomenal pressure-relieving effect. The reindeer skin vojlock is wonderfully soft against the horse, warms and protects the horse's skin, repels moisture and prevents chafing.
High demand for reindeer hides
Benny has been exporting reindeer hides to various countries for around 20 - 25 years. Mainly to Norway and the alpine regions of Europe - Switzerland, France, Austria and Germany. In recent years, the hides have also reached the USA and Japan. Benny has collaborated with a company in Dalarna that buys the skins and in turn exports some of them outside Europe.
Through contact with EEN, exports were started up to China
When Benny was approached by a Chinese agent interested in buying hides, he contacted the Enterprise Europe Network (EEN) at Dalarna Science Park. China was a new market for the company. He had heard that they had good contacts in China and met with an international advisor. Benny then received free advice on export processes, background checks and contract negotiations, and now the reindeer hides are on sale in China.
Raw material constraints are a challenge
Demand is greater than supply because very few reindeer are slaughtered in Sweden each year. Since the reindeer industry's seasons are followed and the number of reindeer ready for slaughter is respected, the slaughter only takes place a few days a year. Through good cooperation and agreements with, among others, Idre Sameby's slaughterhouse, Gealtan can still receive larger orders from its customers with about a year's notice.
One way to grow the company has been to work with exports, which has increased turnover as Gealtan AB has reached several markets. The export work has paid off and, for example, they are exporting 30% more to Japan this year than last year.
A tip from Benny when you want to grow despite limited supply of the product is to control the business with price. If you have a quality product, you can earn more on the same volume. However, there is a fine line and you can lose customers if you are not careful. But the advantage of exporting is that it is easier to charge a higher price if the product is exclusive enough.
Facts about Gealtan
Company: Gealtan AB
Business idea: Sale of reindeer skins
Location: Foskros, Dalarna
Turnover: 3.7 million (2022)
Number of employees: 1
Export market: Europe, USA, Japan and China
