Monday, 11 July 2016 14:54

Dairy - It’s not rocket science. Or is it?

Written by 
Fonterra chief operating officer of global operations, Robert Spurway. Fonterra chief operating officer of global operations, Robert Spurway.

Using charged iron to capture tiny particles worth hundreds of dollars per kilo and creating technology to speed up nature more than 300 fold.

Not to mention real-time composition analysis with the potential to revolutionise a multi-billion dollar industry.

These may sound like scenarios borne out of a NASA testing facility, but in fact these space-age innovations have origins right here in New Zealand – part of Fonterra's asset optimisation programme that has helped position the cooperative as a global leader in dairy R&D.

Fonterra chief operating officer of global operations, Robert Spurway says R&D is one of the most important factors shaping the dairy industry today, particularly when it comes to selling our capabilities with new and existing customers around the world.

"Dairy is an increasingly competitive sector globally, and as more players come into the game the onus is on manufacturers to find ways to differentiate themselves through their service and product offering. There's little doubt that innovation will play an increasingly important role in deciding which dairy companies will best meet existing and emerging customer demand," says Spurway.

"Our customers don't just buy products, they buy into our ability to think outside the box and find new ways to save them time, effort and cost. That might be by optimising the performance of products they already buy from us, or by looking at their business challenges and creating new product lines to help solve them."

Products like lactoferrin – the tiny protein dubbed 'pink gold' that the Co-operative extracts from milk and which fetches prices many hundreds of times higher than wholemilk powder – or instant quick frozen mozzarella, which cuts down the maturation time of the cheese from months to hours are both the result of Fonterra's investment in R&D.

The real ingenuity behind these innovations, says Spurway, lies in the creative thinking that backs thousands of tonnes of stainless steel manufacturing equipment the Co-operative operates – a network of assets that is closely guarded for its intellectual property, and for good reason.

"The difference between a product that is at the cutting edge of the market and one that sits somewhere in the middle can come down to a few degrees Celsius during production, the angle of a few pipes, or the geometry of a particular vat.

"It is an exacting science and this is where Fonterra leads the world. Our investment in dairy R&D is what allows us to make the most consistent milk powders on the market, UHT cream that is nearly impossible to over-whip, or lactose that is so pure that it can be used to deliver medicine in asthma inhalers."

The cooperative has long been a leader in dairy R&D, topping the list of raw milk processors investing in innovation at more than $80 million each year. It is also works closely alongside the Government's Primary Growth Partnership in the delivery of each of these innovations.

This focus on R&D is also ensuring a consistency of product specification far beyond what has been achievable in the past, and only continues to improve.

"Our customers pay for consistency – if they order MPC70 they want to know that their milk protein concentrate has exactly 70 per cent protein. Not 66, not 73. Our investment in state-of-the-art manufacturing equipment and decades of expertise operating it means our customers always know they're getting what they paid for."

What's next on the innovation front for Fonterra – Spurway says the team at the Fonterra Research and Development Centre have some special concepts in the wings.

"Product development never stops and, from what I've seen, we can expect some exciting developments in the very near future."

More like this

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

Editorial: A new era for two co-ops

OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.

Should co-op sell its consumer brands?

OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.

Featured

'One more push' to eliminate FE

Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

National

Machinery & Products

New McHale terra drive axle option

Well-known for its Fusion baler wrapper combination, Irish manufacturer McHale has launched an interesting option at the recent Irish Ploughing…

Amazone unveils flagship spreader

With the price of fertiliser still significantly higher than 2024, there is an increased onus on ensuring its spread accurately at…

» Latest Print Issues Online

Milking It

Tough times

OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.

MSA triumph

OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter