In about one year, restrictions on milk production will be lifted in the EU, and the Irish are moving to take advantage of this, Proudfoot says. Milk quotas were imposed in 1984 to limit production in Europe where excess production was referred to as ‘milk lakes’.
New Zealand must move quickly to counter any marketing push by Irish and other EU milk producers, Proudfoot says. The Irish in particular are looking to increase stocking rates and grow production. New milk processing plants are being built and the Irish are seeking new markets.
“I am told that there is feeling of optimism that the Irish dairy industry is about to be unleashed. [They produce] a high quality, high premium product similar to [New Zealand’s] and they’re are going to look at the same growth markets we sell in. New Zealand is going to face more competition in key markets.”
The Irish are well-advanced in articulating a sustainability story and New Zealand’s story must be as good as theirs in that respect, Proudfoot says. The Irish scheme ‘Origen Green’, which most Irish producers have signed up to, deserves notice by New Zealand.
“It extends back onto the farm. Each farm effectively gets its own carbon footprint done, and learns how it can reduce its carbon footprint by improving productivity and profitability. It’s tied to improving commercial outcomes, a market-driven scheme designed to meet the needs of consumers.
“Whichever way you look at it we don’t have anything we can articulate in the same way. We need to work out how to do that – and quickly.”
Proudfoot says the 100 % Pure brand on which New Zealand hangs its hat is fine for tourism and few other things, but inappropriate for the primary sector.
“We need to have a brand that is unique to our food production and to tell the story about what is most important [there] – its safety and its efficacy. There also needs to be a baseline sustainability standard which people must meet or lose their license to operate.”
New Zealand hasn’t had to “work too hard to get customers” because of its unique product offerings. Now we must understand what our customers need and meet that requirement.
“We need to work a bit harder, particularly in understanding what customers needs are and how we can articulate the attributes,” he says.
