We Are Entering Into a “Renaissance Period for Dairy,” Says Top Fonterra Executive

13 Dec 2016 --- The world's biggest dairy exporter believes we are entering into "a renaissance period for dairy" and is developing novel ways of enticing new customers to consume its products. Fonterra is hoping to entice new customers in Asia and the Middle East with innovative products, complementing established western markets where dairy eating habits are already largely defined.

Fonterra chief operating officer, Global Consumer and Foodservice, Jacqueline Chow said the industry is entering into a renaissance period for dairy, where product research and development will start shaping the diets of future generations.

“It’s an exciting time for Fonterra as we look to play a leading role in how the world sources dairy nutrition,” she said.

“Sales trends show consumers around the world are demanding a more protein rich diet, and with tastes varying from region to region we’re working closely with our customers to make sure we deliver the products to match.”

Products like cheese are only now beginning to feature prominently in some of the world’s dairy growth markets said Chow, and a lot of product innovation is going on behind the scenes to make sure these products hit the mark.
 
“Our customers in Korea, for example, are very conscious of the amount of salt in their diets, and many see dairy as a nutritious, low salt protein options,” she said.

“To cater to this specific demand, we have formulated a low salt cheese down at our Stirling site in the South Island that has become extremely popular with young children as an introduction to dairy.”

Fonterra has launched bite-sized cheese cubes, called Anchor Candy Cheese, in Hong Kong aimed at children, on the back of rising demand for healthier

options in supermarkets as well as parents wanting products that will pique the interest of their children.
 
Anchor Candy Cheese contains twice the nutritional content of regular cheddar and less sugar.
 
Fonterra is also innovating its approach in powdered products.
 
“At our Kapuni site in South Taranaki, we have created a specialised pharmaceutical lactose called Wyndale, tailored specifically for the Indian market. The product is used as an excipient in medicines, helping take the active ingredient to a targeted location in the body. Kapuni’s primary customer, DFE Pharma, has a 25 percent share in this market, with ambitions of growing further.”
 
“By working directly with Kapuni, Wyndale went from concept to commercially produced in just five weeks. Since its launch, demand for this product has increased by 75 percent, filling a gap in the market,” said Chow.
 
“At the end of the day, it comes back to our farmers and what we can do to ensure we are making the most out of every drop of milk. By creating products that add value, we are maximising returns while helping shape the future of dairy in strategically important markets.”