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FT-Sep16

STAYING IN NEW ZEALAND GOOD FOR ECONOMY, SAYS BREW GROUP www.foodtechnology.co.nz 19 demonstrating that a pharma food has an effect, is safe, has limited side-effects and conforms to what is currently a very tight regulatory regime. The extent to which pharma foods become a significant part of a dairy company’s investment portfolio will depend upon the evolution of regulatory frameworks, and advances in research to create a much more cost-effective and less restrictive environment for bringing such products to market. Finally, the market for such foods will probably take time and effort to develop, in an era influenced by the real food movement which prizes authenticity and products that can be traced back to their source. For those prepared to invest in meeting the requirements of consumers and regulators through quality science, robust supply chains, product traceability and transparency, there is a substantial reward. That is why the opportunity for functional foods that build upon the natural goodness of milk remains so attractive – it is a way of offering additional benefits to our customers and consumers and creating additional value for farmers. Consumers are looking for functional foods to help keep them healthy. But they are also looking for foods that are more natural, free from additives and come from trusted sources. Safe products from trusted sources that match the values of consumers is probably one of the strongest trends in food today. Of course these foods must also taste great, be convenient to eat and fit into consumers’ lifestyle needs. The opportunities for dairy right now are exciting because we can produce natural and functional foods at the convergence of both trends. The goodness of dairy nutrition can also be provided in so many tasty and convenient formats. We can ‘have our (natural functional cheese) cake and eat it too’! Looking to the years ahead, I doubt we will be eating a handful of dairy-based pharmaceuticals, but I am confident that milk and dairy products will remain in the centre of the breakfast bowl, the dinner plate and the beverage glass. I am also confident that Fonterra will continue providing the natural goodness of dairy in convenient formats with functional properties, to help our customers perform mentally and physically during the day and over the rest of their lives. Companies that stay to produce in New Zealand rather than move to low-cost economies are doing good for the economy, Brew Group CEO NZ Mark Hamilton says. “I think we’ve seen a lot of businesses move offshore to low-cost economies and things like that, and actually we believe really strongly that producing in New Zealand is very good for New Zealand – providing jobs, providing employment, being actively involved in building not only people’s lives but the infrastructure that we all come to enjoy,” he says in a video interview with FGC for its Leaders Series. “In the industry, generally people look at sustainability as ‘social’, ‘environment’ and ‘economic’. We tend to refer to it as ‘people’, ‘planet’ and ‘prosperity’. So each of those three things need to come together.” Brew Group treats its customers, its suppliers in Brazil, Kenya or El Salvador, and its consumers with those values in mind, as well as how it involves its staff in the business and in expanding their capabilities. About planet, Hamilton says the environment is important to New Zealanders, and how sourcing “socially just” product from ethical suppliers is important to having a sustainable product from an agricultural perspective. FGC Chief Executive Katherine Rich says Brew Group’s attitudes are typical of what is good about New Zealand food companies. “Sustainability forms a big part of their culture and that builds them long-lasting reputations, not just with consumers in New Zealand who can see they are doing the right thing, but it also helps win over customers overseas. It’s part of the New Zealand picture.” Other FGHC Leaders Series videos are available at www.fgc.org.nz/issues.


FT-Sep16
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