Innovation rich dairy highlights challenges, opportunities and success

Federated Farmers is highlighting Fonterra’s latest joint venture (JV) acquisition in the United States as well as Westland Milk Products research led development of its yoghurt line, as further evidence of innovation-led value being put into dairy products.

“We must refute the notion that the dairy industry is only low value commodities,” says Lachlan McKenzie, Federated Farmers Dairy chairperson.

“Milk powder isn’t just what commentators see on shelves but is made to specific manufacturer specification. Also, at the end of 2009, another joint venture (JV), DMV-Fonterra Excipients is building Fonterra’s position in pharmaceutical grade lactose.

“Yet the move by DairiConcepts LP in the United States to acquire an Italian hard cheese manufacturing plant is exciting. It comes not long after Fonterra itself won the Best New Cheese Award at the prestigious International Dairy Federation (IDF) Innovation Awards.

“DairiConcepts is a joint venture between the cooperatives Fonterra and Dairy Farmers of America and gives the JV a number two market position in the production of hard cheeses such as parmesan, parmigiano reggiano and pecorino romano.

“From the point of view of the proposed Trans Pacific Partnership (TPP) including the United States, this is strong evidence that Fonterra and New Zealand aren’t to be feared.

“I’m hoping the Minnesota Democrat Senators, Al Franken and Amy Klobuchar, may now reconsider their view of the proposed TPP as the JV’s plant is in Dalbo, Minnesota.

“Yet it’s not just Fonterra to the fore but the co-operative, Westland Milk Products, too.

“Its probiotic EasiYo yoghurt brand is likely to see it apply for the recently announced research and development grant. Westland has three potential projects, all of them exciting, which offers immediate payback for the country in adding value to primary dairy production.

“That includes validating if ‘DIY’ EasiYo has up to four times the good bacteria compared to manufactured yoghurts. It’s also working with the University of Auckland’s Liggins Institute, to research what impact such yoghurt may have as a breakfast food for low decile school children.

“The exciting thing is that Westland’s EasiYo brand has become preferred by the Royal College of Obstetrics in a medical promotion to increase the calcium intake of pregnant women in the UK.

“In light of the Emissions Trading Scheme, we see in Fonterra especially, moves to reduce dependence on New Zealand and to broaden its base as a global food player.

“This is farsighted and in the long term interests of shareholding farmers because global growth presents opportunities for Fonterra, Westland and other producers but that also needs the Government to remove the blinkers of ideology,” Mr McKenzie concluded.