Thursday, 02 July 2015 04:52

Industry too product focused

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Sir Ray Avery has criticised Fonterra’s light-proof milk bottles. Sir Ray Avery has criticised Fonterra’s light-proof milk bottles.

Speaking to Rural News after his SIDE speech, Sir Ray Avery said he thinks the whole dairy industry is too “product focussed”.

“Fonterra would be the first to say they haven’t really diversified into higher value products but I think farmers could think about that too.”

Some are breaking away from Fonterra with their own customer-focussed ventures, he noted, but they should also be pushing their co-operative to be more market led, he said, criticising the light-proof milk bottle initiative.

“That’s all just rubbish in terms of the real science on the time the product sees light. It’s really a failed marketing thing.”

A better approach is marketing “boutique” milk products such as nutritionally fortified blends, he believes.

“I would buy a super-fat milk for instance.”

Avery says Fonterra is starting to move in the right direction, but the inertia for that is coming from  competitors and typically it takes 20 years to ring the changes in “embedded” industry organisations such as Fonterra, he warned.

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