Developing economies set to drive growth in global dairy and soy food market

The global dairy and soy food market will rise from US$617.9 billion in 2015 to US$773.4 billion by 2020, representing a compound annual growth rate of 4.6%, according to consumer insight firm Canadean.

The company’s latest report states that this cautious growth will be driven primarily by emerging and developing markets in Asia-Pacific (APAC), Middle East and Africa (MEA) and East European regions, in contrast to West Europe and North America, whose economic fragility has resulted in risks of weaker market growth.

“Changing consumer preferences and purchase patterns due to socio-economic and demographic changes have created new market dynamics,” said Kiran Akkineni, Analyst for Canadean.

“While the key markets of Western Europe and North America have witnessed stagnancy in liquid milk consumption paired with fast growth in processed and soy products, developing countries have recorded steep growth in demand for dairy products owing to their fairly low per capita consumption.”

Consumption of milk in North America is currently declining as consumers opt for alternative beverages such as juices and vitamin-infused water. By contrast, the rise in per capita consumption of dairy by the growing middle-class population in developing markets in the APAC, MEA and Eastern Europe regions will drive growth in the dairy and soy foods market.

Canadean’s analysis reveals that consumers in developed markets tend to base their beverage choices on their level of personalization, whether they can be consumed on-the-go, and whether they can provide a novel experience. Consumers in emerging countries including Brazil, China and India, on the other hand, place a greater emphasis on nutritional value, following health and wellness trends.

 

Health appeal of lactose-free is opportunity for emerging dairy markets: report

DSM’s latest Global Insight Series report reveals that an overwhelming number of consumers of lactose-free dairy in emerging markets such as Colombia and China, say that their main purchase driver is the health appeal of lactose-free products, not merely lactose-intolerance.

Based on an international consumer survey, comparing results in the mainstream low-lactose market in Finland to upcoming markets in Colombia and China, the report reveals that lactose-intolerance is not the main driver for consumers to choose lactose-free dairy over regular dairy in Colombia and China, despite these countries having much higher lactose-intolerant levels than in Finland. Instead, they prefer lactose-free dairy for its health benefits.

In China and Colombia, 82% and 73% (respectively) of the consumers agree that lactose-free dairy is healthier than regular dairy. They also indicated that they would increase their consumption if lactose-free dairy was reduced in fat and sugar. Thus, understanding the specific health benefits of lactose-free dairy over regular dairy in upcoming markets can further drive product innovation and consumer interest.

“This report gives valuable insights into how lactose-free dairy products can be further developed and positioned, making the most of the wide array of positively perceived health benefits by consumers.” explained Marten Paasman, global business line manager of dairy enzymes.

“As a leading supplier of enzymes for low lactose and lactose-free products, we have been working with customers all around the world to successfully innovate this category beyond lactose-intolerance. An opportunity that is particularly attractive to health-conscious consumers in emerging markets where the dairy market is evolving rapidly.”

Kellogg’s launches another cereal killer concept

According to a report in Reuters and stuff.co.nz, breakfast cereal giant Kellogg’s is opening its first US cereal cafe in New York City’s Times Square.

The cafe, which opens next week on July 4, is all part of the Kellogg’s strategy to reinvigorate US cereal sales that have declined as consumers choose healthier foods over sugary breakfast products.

This concept is already in operation in the UK where the Cereal Killer Cafe has two branches in London.

The cafe combines fast-casual dining with cereals with staff members behind a counter laden with myriad toppings like lime zest, thyme and malted milk powder.

Customers receive a buzzer that notifies them when their order is complete.

Once the buzzer goes off, they pick up their order, packaged in a brown paper bag from a red locker together with a 350ml container of milk.

New report shows growth of lactose-free dairy markets

DSM’s latest Global Insight Series report reveals that an overwhelming number of consumers of lactose-free dairy in emerging markets such as Colombia and China, say that their main purchase driver is the health appeal of lactose-free products, not merely lactose-intolerance.

Based on an international consumer survey, comparing results in the mainstream low-lactose market in Finland to upcoming markets in Colombia and China, the report reveals that lactose-intolerance is not the main driver for consumers to choose lactose-free dairy over regular dairy in Colombia and China, despite these countries having much higher lactose-intolerant levels than in Finland.

Instead, they prefer lactose-free dairy for its health benefits. In China and Colombia, 82 per cent and 73 per cent respectively of consumers agree that lactose-free dairy is healthier than regular dairy.

They also indicated that they would increase their consumption if lactose-free dairy was reduced in fat and sugar. Thus, understanding the specific health benefits of lactose-free dairy over regular dairy in upcoming markets can further drive product innovation and consumer interest.

“This report gives valuable insights into how lactose-free dairy products can be further developed and positioned, making the most of the wide array of positively perceived health benefits by consumers.” explains Marten Paasman, global business line manager of dairy enzymes.

“As a leading supplier of enzymes for low lactose and lactose-free products, we have been working with customers all around the world to successfully innovate this category beyond lactose-intolerance. An opportunity that is particularly attractive to health-conscious consumers in emerging markets where the dairy market is evolving rapidly.”

Fonterra cuts new season farmgate milk price

Dairy processor Fonterra has announced an opening farmgate milk price of $4.75 kgms for 2016/17 and forecast a closing price $5.00 kgms for the season.

The announcement follows the release of Murray Goulburn’s forecast of $4.80 kgms for the season.

Fonterra Chief Operating Officer of Velocity and Innovation, Judith Swales (pictured) said in a statement the forecast assumes the Australian dollar will remain at about 74 US cents.

“Our farmgate milk price in Australia is also impacted by global dairy markets given our mix of domestic and export sales,” Swales said.

“While we are still seeing an imbalance between global milk supply and demand there are signs in key milk producing areas of a slowdown in production and increased imports into key markets such as China, Asia and Latin America. This supports our view of a recovery in global prices as we move through the season.”

Individual suppliers’ milk prices will vary across Fonterra’s supply regions, depending on the individual farm’s milk profile, regional production factors, milk quality and farm management systems.

Murray Goulburn’s milk price to deliver farmers 12 months of pain

Murray Goulburn’s forecast farmgate milk price of $4.80 per kgms for 2016/2017 will enforce dairy farmers to try to survive while receiving less for their milk than the cost of producing it.

David Basham, acting president of advocacy body Australian Dairy Farmers told the SMH farmers are likely to have to endure this situation for the next 12 months.

Announcing the forecast yesterday, MG Interim Chief Executive Officer, David Mallinson blamed commodity prices for the forecast.

Mallinson said that, according to the latest data, excess global inventories may now be more than the equivalent of 6 billion litres of milk.

“We acknowledge FY17 will be a challenging year for our suppliers. We have set a robust forecast, and while there are a number of areas which may provide upside to our FY17 forecast, we do not believe it is prudent to include these in our forecast at this stage. Should more positive conditions emerge, MG will be vigilant in ensuring any upside passes to our suppliers and investors,” he said in a statement.

One dairy farmer facing the low price, Damian Murphy from South Gipsland told the SMH producers will need assistance if they are to survive.

“The dairy industry will need supportive banks to assist us through this time,” Murphy said.

“We are hoping that if we needed more money, [the banks] will support us with that, or if we needed to change the terms of our loans, they will be supportive of that.

“It is just a matter of hanging out for as long as we can, for as best as we can, looking for that turnaround.”

Australia’s drinking quantity decreases but quality increases

Australians say they are drinking less but better with our per capita spend on alcohol rising as we seek out more premium alcoholic beverages, according to a new report released today.

The emma (Enhanced Media Metrics Australia) Alcoholic Beverages Trends & Insights Report* found that half of people aged 18 years and over say they are drinking less now than they used to.

There is also a move to premium beverages, with the dollar value of liquor sales rising 1.5%^ in 2015, which means Australians are spending more on their favourite drink. Australia is an overwhelmingly wine and beer drinking nation. Wine is our most popular drink, although men up to age 65 prefer beer, the emma data has found.

Cider is our third most popular drink, followed by scotch or whiskey, with other varieties well behind. Women opt for wine more than twice as often as other drinks, whereas men are more varied in their consumption patterns.

White wine edges out red as the most consumed at 43% of adults, compared to 41%, while 23% enjoy sparkling wine or champagne.

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Alcohol is still very much part of Australian culture, with three quarters of adult men and women consuming an alcoholic beverage in the past four weeks.

“The trend towards drinking better offers growth opportunities to premium brands that can tap into the mindset of these consumers.

The move by Australians towards more premium beverages and spending more as a result, underscores the importance of effective brand positioning and marketing.”

Perceptions of quality and value change as people age and emma data shows that older people are more likely to believe that Australian wine is better than that from overseas.

They were also less likely to try foreign beers, preferring homegrown brands. There has been a shift in places and occasions where Australians prefer to drink, which changes by age and life stage. The majority of Australians prefer to drink at home, which was most prevalent among 30-32 years olds at 87%.

Venues where alcohol is consumed differ among various age groups. For example, among 24-26 year olds, 61% drank at a friend or relative’s house, while 19% of 18-20 year olds drank at a nightclub.

Among older people, 50% of 45-47 year olds drank at a restaurant or café, while 36% of 54-56 year olds drank at a bar or pub and a third of 66-68 year olds preferred RSLs, bowls or an AFL club.

According to Ipsos’s consumer segmentation, there are four key segments that represent 35% of Australia’s adult population who are the most likely to drink any alcohol more than once a week.

They are the ‘Educated Ambition’ (highest earners and most educated), ‘Social Creatives’ (young, affluent urbanites), ‘Serene Seclusion’ (people at or near retirement living in regional and rural areas) and ‘Conscientious Consumption’ (middle and upper class families) segments. *

The report draws on data from emma (Enhanced Media Metrics Australia) to explore the changing mindsets, preferences and behaviours of Australian adults towards alcohol. emma interviews more than 54,000 people each year. ^ IBISWorld Liquor Retailing in Australia, March 2016

New Coon cheese campaign focuses on the brand’s heritage

Warrnambool Cheese and Butter’s new integrated advertising campaign for Coon cheese celebrates the heritage of the brand and its everyday use by Australians.

The campaign runs across TV, print and digital media. The TV commercial aired for the first time last night (Sunday June 12) and portrays a mother and daughter passing on the tradition of Coon cheese toasties over several decades under the tagline “Comfort never grows old”.

The campaign, developed by advertising agency Havas Melbourne, is the first in nearly three years for Coon cheese after the brand was purchased from Lion Dairy and Drinks by WCB in 2015. WCB GM Marketing Ted Lawson said the TVC is a celebration of Coon’s heritage.

“For the past 81 years Coon cheese has been enjoyed by Australian families and is a staple of everyday life. “We hope the TVC reminds Australians of their childhood, growing up with Coon cheese and the pleasure and comfort of enjoying a cheese toastie with family. This is a tradition that we want to continue,” he said.

The TVC will appear across primetime media such as Masterchef Australia and The Voice and within specific STV, online and print media environments.

Bega Cheese cuts farmgate dairy price

Dairy processor Bega Cheese will cut its farmgate milk price by 11 per cent when the new season commences on July 1.

As the ABC reports, the company announced yesterday that it will cut the amount it pays farmers from $5.60 Kg milk solids to $5.

The announcement follows the decisions of the two major processors, Murray Goulburn and Fonterra to retrospectively cut farmgate prices in April.

“Farm gate milk prices are ultimately driven by returns we receive from markets both within Australia and globally. Many of the factors affecting these markets such as global supply, demand, currency relativities and competitor behaviour are beyond the control of individual companies,” commented Executive Chairman Barry Irvin.

“Bega Cheese’s long term strategy of building value added business platforms does assist in enhancing the base value of dairy products and therefore farm gate milk price, but cannot insulate farm gate milk prices from the reality of the markets.”

Meanwhile, as the Weekly Times reports, farmers who are dealing with the cuts by Murray Goulburn and Fonterra are now waiting for the new season prices.

“It is extremely disappointing that scant few processors have made opening price announcements to date,” said Australian Dairy Farmers acting president David Basham.

“Farmers are already facing a very challenging season. Processors should be doing what they can to provide certainty and support during these unprecedented circumstances.”

Hygienic stainless steel air nozzles for food makers

A challenge for many manufacturers is finding flat air blowing nozzles that are durable and appropriate for their application.

Traditionally made of Polyacetalic resin (POM) or nickel-plated aluminium, they are unable to withstand the rigours of caustic cleaning chemicals so need to be replaced regularly.

To solve this problem, Tecpro Australia has just released a Flat Fan Blowing Nozzle in 316L Stainless Steel – ideal for applications requiring strong impact airflows.

Designed and manufactured in Europe, these Flat Fan Blowing Nozzles provide constant, streamlined airflows without turbulence. In fact their superior design induces surrounding air to magnify the air blowing force to create greater efficiency.

When mounted side-by-side, they provide a highly effective air curtain for conveyor belts.

The 316L Stainless Steel Flat Fan Air Nozzle is resistant to corrosive forces in situations where caustic chemical cleaning is required and is suitable for use in hygienic applications. As a result, they are well suited for food, beverage and pharmaceutical manufacturing.

The nickel-plated aluminium model and the POM option are cost effective alternatives suitable for removing moisture, dust, swarf and other waste resulting from machining and woodworking processes or prior to laminating surfaces.

All models of Tecpro’s Flat Fan Blowing Nozzles use compressed air which is blown through 16 orifices to produce a uniform spray of strong impact air jets with low noise. In addition, these Air Blowing Nozzles comply with OSHA Regulations.

Bringing Asian food to our homes

Eating fresher is easy with a new natural and gluten free range of FRESH WRAP kits from Marion’s Kitchen.

Each kit comes with a flavour-packed sauce for stir-frying fresh veggies and your chosen protein along with crunchy sprinkles like crispy garlic or sesame seeds wrapped up in fresh lettuce or cabbage leaves.

Marion Grasby spends all her time thinking about how to make products that people will love eating and sharing. ‘I care deeply about what I do and the products, ingredients and recipes I share. I want people to be able to easily create awesome Asian food at home with ingredients that are clean, fresh and super tasty.

Personally, I’ve been looking to find easier ways to include more fresh vegetables into my busy lifestyle and I think more and more Australians feel the same way. My new range aims to inspire fresher eating.’

The new range of FRESH WRAPS includes Malaysian Satay, Korean Chilli & Sesame and Cantonese Hoisin & Garlic which will be available in Woolworths in July. The Marion’s Kitchen full range includes:

Thai Massaman Curry, Singapore Laksa, Malaysian Curry, Pad Thai, Thai Red Curry, Thai Green Curry, and San Choy Bow.

For more information, visit: www.marionskitchen.com.au

 

Meet Larry- the food manufacturers best friend

South Australian company Complexica has developed a robot with an algorithm-based persona, which is being used to help businesses make data-driven decisions in real time.

Larry, the Digital Analyst, is made up of a set of algorithms tuned to complex problems in order to quickly generate answers that would otherwise take people a very long time to work out.

In one example, Larry helped formulate a 52-week promotions plan for a national company with 25,000 products sold in 1400 stores across Australia based on the question of which product should be on promotion at which time of year and at which price to maximise profits.

“It (usually) takes about 30-man days to come up with one plan because you are dealing with 25,000 items over 1400 stores for 52 weeks – it’s like a really big Sudoku,” said Complexica’s Managing Director Matthew Michalewicz.

“But in 60 seconds Larry was able to consider about 10 million combinations of different prices, products, frequency, and predict how much more you will sell with all of these combinations and convert them into weekly averages per state and per store.

“A machine and all the computing power that sits in the cloud can consider things that an organisation will never have time to consider,” he added.

According to Michalewicz, Larry is best suited to large companies that experience repetitive sales of everyday items such as food, hardware and liquor.

“Businesses that have complexity are going to get much greater benefits from Larry than businesses that don’t. We define complexity by three core things: how big a business is; how many products you sell; and how many customers you have.”

Complexica has signed up 20 companies across a range of industries and aims to scale up to 100 clients within two years.

Current clients include PFD Food Services, Liquor Marketing Group, Leader Computers and Coventry Group.

Fonterra reshuffles senior management team

Dairy giant Fonterra has announced several role changes within its current senior management team, as it aims to become a leading consumer and food service business.

Announcing the changes, Chief executive Theo Spierings highlighted the new roles of Jacqueline Chow, Judith Swales and Miles Hurrell as most significant.

Chow, previously Chief Operating Officer Velocity, is now Chief Operating Officer Global Consumer and Foodservice. She will lead the Global Consumer and Foodservice business unit into 2017 after which she plans to retire from executive life and return to Australia to pursue a portfolio of board directorships.

Judith Swales, previously Managing Director Oceania, is now Chief Operating Officer Velocity and Innovation. Fonterra Australia will continue to report through to her.

And Miles Hurrell, previously Group Director of Co-operative Affairs, has been named as new Chief Operating Officer Farm Source.

“Miles, Jacqueline and Judith are taking on different and expanded roles while Lukas’ role is unchanged. Robert and Kelvin have new titles that properly reflect the breadth and importance of their roles,” said Spierings.

In other changes, Kelvin Wickham, previously Managing Director of Global Ingredients, whose role and position remains unchanged, has been named Chief Operating Officer NZMP; and Robert Spurway, previously Managing Director Global Operations, is now Chief Operating Officer Global Operations. Chief Financial Officer Lukas Paravicini’s role and position will remain unchanged.

Industrial gear boxes suitable for food & beverage makers

Regal Australia has introduced its range of Marathon Gearboxes, suitable for industries such as food and beverage, pharmaceutical, water, chemical/petrochemical, metal/steel and mining. The range features models with single piece die cast housings and vacuum impregnated housing for greater sealing and synthetic oils for “long life” lubrication.

The range is available in aluminium, cast iron and stainless steel. It features the following gearboxes: right angle worm, square worm, inline coaxial, shaft mounted, helical bevel and stainless steel.

New survey reveals most workers are unhappy

For manufacturers, in fact any Australian business, having a happy and content workforce is vital to the success of the company.

So it will be disappointing for readers to hear that four out of every five Australians are unhappy where they work and are planning to leave their current role in search of new challenges, and more money.

AIM’s (Australian Institute of Management) 2016 National Salary Survey makes sobering reading. The findings show that Australian living standards are now under more pressure than ever before with wage growth falling in line with the rate of inflation, a statistic rarely seen in Australia over the past three decades.

Now in its 52nd year, AIM’s 2016 survey of more than 500 Australian organisations, covering about 25,000 employees and around 270 job roles, found that the overall salary increase is currently sitting at 3%, which is a decrease from the 3.4% reported in 2015 and the lowest reported percentage since 2012, dropping 1.1% overall in four years.

Sam Bell, AIM’s GM for Policy & Advocacy, describes it as a significant decline especially as it is forecasted to continue in 2017 in many industries, especially in Queensland and WA, both of which have been affected by the mining downturn.

“For the last decade we have been accustomed or expected to salary increases of 4 to 5%.” But he admits some industries do better than others in good times and bad times. “But now employees are receiving 2 to 3% on average, which is causing some movement in the market because people are expecting greater financial rewards,” Bell said.

The survey reveals four out of five people (82%) are looking for new challenges, with two thirds looking for new opportunities within their industry. More than half (56.5%) cited limited career advancement opportunities with 44.4% looking for better financial reward.

Bell said this situation is caused by two major issues. “Firstly the slower economic conditions are contributing to less career advancement. In the good times people were getting regular promotions, but now with the slower economy, those internal promotions are not happening.

“People are not moving up the ladder as fast as they would like, so they look at opportunities outside their workplace, often at competitors, to get that promotion.”

Secondly, Bell says, employees are not happy with the 2 to 3% salary increase and are changing jobs to get more, which is a costly exercise for companies.

Cost of recruiting

Getting new people is fine, but what many manufacturers don’t realise is that the cost of recruiting a new staff member is around $26,400, which includes the exit process of the employee, the recruitment of a new employee and the training of him/her to fulfil the role.

“It’s a significant amount, and if they are leaving due to lack of promotion or salary increase, companies have to realise that there is a big cost to replace them.” Bell says keeping salary increases very low, can be very costly as in most cases it’s the best people who leave. “I don’t think many managers realise how much it costs to replace someone, plus the disruption that causes to the business.” David Pich, AIM’s CEO, says retaining staff is no easy feat.

“Employees can become restless in roles that have limited career advancements or where they don’t enjoy their time at work. “Combine that with a volatile property and rental market and the pressure to contribute more to their superannuation fund, it’s no wonder staff are becoming disillusioned and feel the need to move jobs as a perceived guarantee to a salary increase,” said Pich.

The survey found one in three (34.5%) Australian businesses are making contributions above the superannuation guarantee (9.5%). However, the proportion of employees who are salary sacrificing has dropped across the board since last year, suggesting Australian employees are putting less focus on their retirement, choosing instead to use their disposable incomes to maintain their current standard of living.

Pich encourages business leaders to reassess their current pay model and suggests creating a positive and inspiring workplace culture to decrease staff turnover and retain human resource.

“People don’t leave companies; they leave leaders. Great managers and leaders make decisions that impact people’s lives and that impact can be felt well beyond the workplace. “We spend about a third of our working-age lives doing just that – working. So it is vital our experiences in the workplace are positive as they impact on our overall well-being and on society as a whole.

“At AIM, we’re constantly encouraging our Members to invest in building a positive workplace culture, by having open streams of conversation and offering training and professional development support,” Pich said.

Manufacturing

According to the survey, salaries overall for the manufacturing sector have fallen more than the average. Bell pointed out that while salaries growth in general has fallen from 4.2% to 3% on average over the past four years, the manufacturing sector has fallen from 4.62%, a little bit higher than the average, to 3.07%, which is almost in line with the average salary increase.

“Next year, those in the manufacturing industry expect salary increases to remain fairly flat at 3%, unlike other sectors who are predicting further falls.”

 The findings show that Australian living standards are now under more pressure than ever before with wage growth falling in line with the rate of inflation, a statistic rarely seen in Australia over the past three decades.

Across the manufacturing industry, AIM measures the Food, Beverage and Tobacco; Chemical and petroleum, Metal and Automotive, and Other Manufacturing sectors. “When broken down for example, Mechanical Engineering Managers have seen an increase of about 5%, while employees in the Chemical and Engineering have remained flat at around 4%,” Bell said.

However, the survey shows workers in the automotive sector have seen a decline to 2.7% growth, dragging the overall figure down. In general employment terms, Bell says he is seeing a significant increase in consultants and temporary workers, rather than full time permanent employees.

“There is strong trend of companies bringing in people for a specific project and a specific time period rather than a full time employee.” When it comes to working conditions, Bell said a company’s workplace culture is very important for employees, followed by learning and development and flexible working conditions at number two and three respectively. “A work life balance is very important for employees.”

The survey found 66.8% of Australian employees left a current job to start a similar role at another organisation, and revealed that businesses are worried workplace culture is to blame for this shift, with 63.7% citing this as the human resource issue they are most concerned about.

 

A2 Milk revises full-year profit guidance upwards

A2 Milk has lifted its full-year profit guidance as demand from China continues and the company adjusts to new infant formula regulations in that country.

The company said in a statement that it is coping well with the regulations and, as such, group revenue is now forecast to be in the range of $350 million to $360 million and Group Operating EBITDA in the range of $52 million to $54 million for the 2016 financial year.

“In addition, the balance sheet position is forecast to be strong at year end reflecting improved operating cash flow in the second half with cash on hand likely to exceed $50 million,” the statement said.

“The Company is also pleased with the recent announcement that it will be added to the S&P/ASX 200 index effective after the close of trading on 17 June 2016.”

Barnaby Joyce accuses Victoria of playing politics with dairy farmers

The Victorian Government is politicising the struggles of dairy framers and “dithering” on providing them support, says Deputy Prime Minister Barnaby Joyce.

As the Herald Sun reports, the Victorian Government wrote to Joyce requesting amendments to the support package it announced for dairy farmers in May.

The changes suggested by Victorian Minister for Agriculture Jaala Pulford included making all dairy farmers, not just those that supply Fonterra and Murray Goulburn, eligible for assistance and providing Victoria with $750,000 to initially administer the loans.

In addition, the Victorian Government wants the loans to be offered at a 1.7 per cent interest rate, not at 2.71 per cent as Joyce announced.

The disagreement has delayed implementation of the assistance package and, as a result, no farmer has yet received a loan.

“While they dither, farmers are waiting,” Joyce (pictured) said.

Dairy farmers are dealing with the recent dramatic drop in the amount they are being paid by milk processors. Murray Goulburn cut its price from $5.65 to between $4.75-$5.00 kgMS, while the other major dairy processor Fonterra cut its price from $5.60 per kgMS to $5.00 per kgMS.

HPP set to disrupt dairy industry

The trend towards cold pressed and unpasteurized food and beverages in Australia hasn’t gone unnoticed.

SMH reports that consumers will be able to buy unpasteurised milk legally for the first time in Australia from Thursday.  Sydney company Made by Cow has obtained the approval of the NSW Food Authority to use cold pressure as an alternative to conventional heat pasteurisation and sell “cold-pressed raw milk”.

High Pressure Pasteurising (HPP) has been in use in other industries for quite some time. For the first time, an Australian company milk product will be processed by HPP for commercial use by The Made by Cow company. It may be the first in the world to use an HPP process for commercial milk. This stands a significant chance of disrupting the industry due to the dramatic savings in energy related costs associated with traditional pasteurisation.  Here we explore the benefits of HPP and how this technology can add value to your food production business.

HPP, unlike many heat treatment processes, can be achieved post packaging and often with minimal impact to flavour or texture. An excellent example of this is orange and apple juice where the HPP process seems to have no effect on texture or taste of the finished product. HPP juices have become the premium brand products.

Sectors such as dairy, ready meals, pharmaceuticals, baby food, wet salads, fruit, seafood, smallgoods and chicken are positioned well to take advantage of HPP technology

Key benefits of HPP include:

  • improved food safety by post packaged pasteurisation
  • improved food quality often matching that of fresh produce
  • extension in shelf life providing the ability to send products to previously unreachable markets.
  • uses much less energy than other processes

These benefits can often result in a premium checkout price.

Should the cold pressed trend continue and HPP reaches a critical mass through continued growth, many food processors will be looking to add this technology to their existing processes, in order to keep ahead of the herd.

Below is an excellent short video from Millard Refrigerated Services of how HPP works and its key benefits.

Group of dairy farmers plan to sell milk directly to manufacturer

A group of three West Gippsland dairy farmers may bypass the major dairy processors and sell milk directly to a Melbourne yoghurt and cheese maker.

The ABC reports that Picnic Dairy Foods Managing Director Ibrahim Ozdemir met with farmers, Andrew Russell, Trevor Mills and Michael Perry at a property in Longwarry North on Monday and outlined the proposal.

The company currently uses about 80,000 litres of milk a week which it buys from a milk trader.

Ozdemir said he wants to pay the farmers about $6 per kilogram milk solids, which is significantly more than the $4.75 and $5 per kilogram they currently get from Fonterra.

Fonterra and the other major processor Murray Goulburn recently slashed their farmgate prices without warning and left suppliers in a difficult financial position.

“As a company our philosophy has been to support farmers and pay them prices they deserve,” Ozdemir told the ABC, adding that the big processors had given them “an unfair deal”.

Mills said he liked the proposal Picnic Dairy Foods is offering. “I’ve got no ties to Fonterra at all,” he said.

“I’ve given them my loyalty for 20 years and as far as I’m concerned they’ve lost my loyalty now.”

Meanwhile, as the ABC reports, the Victorian Government is considering offering council rates relief to dairy farmers who are coping with the low milk price.

Campaspe Mayor Leigh Wilson wrote to Agriculture Minister Jaala Pulford and suggested the measure. He pointed out that similar measures have been taken in the past to assist farmers during times of drought.

The Victorian Opposition is backing the proposal.

 

DSM launches new cultures for milder tasting white cheese

DSM introduced a new range of white cheese cultures at the DSM Dairy Seminar held on 2 June 2016 in Istanbul (Turkey) to address consumer demand for a milder and fresher flavour.

These cultures come as part of DSM’s total solution, along with enzymes and technical support, that improve not just the taste, but also the affordability and shelf-life of white cheese.

White cheese is commonly produced in Eastern Europe, the Balkans and the Middle East and consists of white brine curd cheeses of which Feta is the most globally appealing. These cheeses have seen a rise in popularity as they fit well with trends for a healthier diet and lifestyle; they are high in protein, can be used in small portions as a table cheese and combined with healthy foods, such as salads. They can also be consumed as small cubes or can be crumbled, making them an attractive and versatile convenience food.

DSM’s total solution enables white cheese producers to extend shelf-life and reduce bitterness, whilst providing a good texture profile and the possibility to differentiate on flavor. It also enables a fast fermentation and accelerates ripening to increase production efficiency.

A process scan to optimize production is provided, as well as a pro-active approach for controlling phage during culture performance in cheese production. Consisting of coagulants, cultures, lipases and technical support, the new range helps white cheese producers to create the next successful white cheese product.