24 No quick fix to labour woes Vol 19 No 26, July 5, 2021
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Fonterra refocus continues Richard Rennie
F
richard.rennie@globalhq.co.nz
EWER cows and more old people provide promising opportunities for Fonterra in both existing and emerging markets over coming years, as the co-op scrapes more value from raw milk supplies. Fonterra chief executive Miles Hurrell says now that the company faces minimal growth in milk supply, it is capable of taking a more discerning view on where opportunities lie across its product and market portfolio. “It is a case of ‘how do we open our minds to that?’” Hurrell said. He says the co-op’s strategic reset in late 2019, after a period of seeking global milk pools, has left it focused and clear that “not all milk is equal”. “We are now saying, ‘let’s keep any offshore milk we get separate’ versus just putting our brand on all of it. We will focus on the white gold we have in New Zealand,” he said. One area that value falls in is the rapidly growing global population
of seniors (65-plus), seeking higher protein in their diets. While foodservice gains are falling largely in China, the protein market at this stage is more of a United States-EuropeJapan story, as those countries experience a sharp rise in their proportion of seniors. Fonterra’s science manager Aaron Fanning says by 2050 the number of over 65-year-olds in the world will have doubled to about two billion people. “There is an average loss of about 1% muscle mass a year from 40 to 50 due to age and a lack of exercise. Dairy is a concentrated protein source that can help with that,” Fanning said. Estimates are also that a third of over 65s can be categorised as malnourished, a factor that almost tripled the number of hospital stays per 100,000 for over 85s, compared to 65 to 80-yearolds. Concentrated protein supplements have been a key focus of the co-op’s research team in recent years, and the company’s trademarked SureProtein supplement has been developed specifically for this rapidly growing market.
POLAR BLAST: Nick Murray from West Otago battled snow, while bracing wind chill to feed stock. Photo: Natwick
Snow reminder winter is here Neal Wallace neal.wallace@globalhq.co.nz FARMERS such as Nick Murray from West Otago were out feeding stock and checking electric fences after the first polar blast of the winter struck last week.
We are working hard now on how to commercialise our IP, while protecting it. Mark Piper Fonterra With palatability ranked double that of competitors, it has come to be incorporated in dietary supplements sold by European medical nutrition companies.
Snow up to 100mm deep was reported from Southland to the Bay of Plenty, but was mostly confined to higher altitudes and disappeared within 24 hours. Murray says farmers were given plenty of advanced warning and, like others spoken to, he says it was
The step to incorporate patented and registered ingredients, rather than create an entire new brand is resonating through much of the co-op’s product development work. Technology, IP and techniques are now starting to play a greater role in revenue streams, rather than wholesale investment in bricks and mortar facilities in offshore markets. Head of strategy and innovation Mark Piper says the protection of IP, technology and companydeveloped science now swung as much on being a corporate
expected in the middle of winter. WeatherWatch lead forecaster Phil Duncan says in the coming week an active front will move up the country, bringing wind and rain, followed by southwesterlies, accompanied by showers and cooler temperatures.
secret, as it did through patent protection. “In the case of a patent, there is nothing to stop anyone looking it up and seeing what is behind it. Trade secrets are equally valuable now for protection. We are working hard now on how to commercialise our IP while protecting it. There are no trade barriers on IP, unlike physical product in some markets,” Piper said. Royalties from IP and ingredients are increasingly a
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