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Rob Mitchell.
On our farms, in our universities, research labs and factories, the dairy industry is in a transformation.
It is rivalling the start of refrigerated shipping 130 years ago and New Zealand's first bold steps into the global marketplace.
Kiwi innovation is again enabling a massive, fundamental shift: moving our nation from a respected global trader in bulk milk and powders to a world leader in targeted dairy products, ingredients and high-value foods, beverages and infant formula.
And there's plenty of value to be had -- for company and country.
Despite a tough financial year, Fonterra raised its net profit 183% in its most recent annual result. Fuelling that success were extraordinary jumps in its consumer and food service (216%) and ingredients (43%) businesses.
As Fonterra's acting manager, global brands and nutrition, Rene Dedoncker, points out, that kind of accelerated change doesn't just happen.
"It is part of a collective and ongoing effort over many years of study and innovation to find that magic 'sweet spot' at the zenith of cutting-edge science and commercial vision."
And change we must. NZ is still a force in global dairying but other nations have made great strides and we remain a shrimp among global corporate whales such as Nestle, Danone and Unilever.
Just as Fonterra has harnessed the hard work and momentum of many in its world-leading co-operative, this 'collective effort' has involved vital partnerships between government and industry -- farmers joining forces with scientists, product developers and salespeople; the Ministry for Primary Industries working with DairyNZ and commercial partners Fonterra, Synlait, LIC and Zespri, among others.
These are unprecedented partnerships to accelerate thought and deed towards realising the Government's huge challenge of doubling primary exports by 2025, while maintaining NZ's strong pastoral identity and limiting the impact on the environment.
DairyNZ chief executive Tim Mackle says his organisation's work with MPI, Fonterra and others, as part of the Transforming the Dairy Value Chain Primary Growth Partnership, is a key plank in a campaign to drive change and reach the goal of adding at least $2.7 billion each year to the national economy by 2025.
This $170 million, seven-year PGP is one of 20 the Government is involved in. That cross-sector support is a vital component in the success helping to drive the national economy forward and realise opportunities from the Trans-Pacific Partnership free-trade agreement and the World Trade Organisation's recent moves to abolish export subsidies for farm products.
The revolution taking place from farmgate to factory floor is also harnessing and transforming the minds of some of this country's best and brightest: dozens of our top scientists and students are working on PGP-funded dairy industry projects that are boosting the national economy and intellectual property while promoting the excellence of NZ's agricultural research.
Cameron Mitchell is part of a team at the University of Auckland studying the impact of dairy products on muscle metabolism. Their work could lead to new foods and beverages for a growing world market in premium-value products supporting healthy lifestyles.
On farms around the country, PGP-funded science and smart thinking are advancing our farmers' capabilities and capacity for change, driving massive improvement in management of nutrients and effluent, people, pasture, stock and environmental effects.
DairyNZ, LIC and others are supporting projects to transform attitudes towards and use of technology and data, and are working towards healthier farms, farmers and animals.
Together, they are all making a difference – the farmer, the scientist, the government official.
Benefits include world-leading PGP-funded research that has led to a mozzarella cheese that can be ready in hours rather than weeks, with $72 million spent on new plant so far and dozens of jobs created in a global market worth $36 billion.
An award-winning milk-fingerprinting innovation has helped strengthen NZ's food safety and quality reputation abroad, especially in countries with variable supply chains and infrastructure.
And there is much more to come.
• Rob Mitchell is the communications manager for the Transforming the Dairy Value Chain Primary Growth Partnership.
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