New Zealand Dairy Sector Leverages Green Image and CSR for Global Competitiveness
Source: The DairyNews
New Zealand dairy farmers and processors are capitalizing on the nation’s pristine environmental reputation to differentiate themselves in the global market, as detailed in discussions during a trip organized by the Livestock Institute in January 2018.
Fonterra, the leading dairy processor in New Zealand, is at the forefront with its corporate social responsibility (CSR) initiatives aimed at aligning with societal expectations increasingly influenced by consumer demand. However, Fonterra is not alone in this endeavor. CSR activities are equally prioritized by emerging players such as Westland Milk Products Cooperative and Synlait.
Westland Milk Products' Approach to Excellence:
Westland Milk Products Cooperative has developed 'FarmEx – The Westland Way to Agricultural Excellence', a CSR program initiated eight years ago. The program focuses on continuous improvement in dairy production to meet evolving societal expectations concerning animal welfare and environmental conservation. New Zealand’s challenges with water management—both qualitative and quantitative—highlight the importance of such initiatives. The cooperative’s approach encompasses comprehensive management strategies for liquid waste, soil, fertilizer, animal welfare, and risk across various domains, aiding farmers in adopting better practices and safeguarding the cooperative from potential societal and media critiques.
Synlait's Drive with Pride Program:
Synlait has rolled out 'Drive with Pride', a CSR scheme among its suppliers since 2014, now encompassing 51 farms. The program addresses critical areas like environmental responsibility, health and safety, social responsibility, animal welfare, and milk quality. It features two levels of farmer qualifications—Extra Gold and Gold Elite—rewarding compliant farms with monetary bonuses, thus incentivizing higher standards in line with customer expectations.
Provenance as a Differentiator:
New Zealand's reputation for producing high-quality dairy products, such as fatty powder which dominates certain market segments, facilitates its export activities to 140 countries, making up 95% of its production. The emphasis on value addition is evident from investments in products like infant formula, cheese, and UHT milk. For instance, Fonterra recently established a facility capable of producing mozzarella in just six hours.
Synlait goes further by offering milk from exclusively grass-fed cows and A2 milk, which is reputed to be closer to human breast milk and easier to digest. Synlait’s innovation extends to 'night milking' practices, which increase the melatonin content of milk, purportedly enhancing its sleep-promoting qualities.
The New Zealand dairy industry, the eighth largest globally, continues to evolve with Fonterra processing 85% of the country’s milk. Both Westland and Synlait contribute significantly to national production, with their innovative approaches underscoring the industry’s commitment to sustainability and quality, pivotal in maintaining a competitive edge in the international market.
Westland Milk Products' Approach to Excellence:
Westland Milk Products Cooperative has developed 'FarmEx – The Westland Way to Agricultural Excellence', a CSR program initiated eight years ago. The program focuses on continuous improvement in dairy production to meet evolving societal expectations concerning animal welfare and environmental conservation. New Zealand’s challenges with water management—both qualitative and quantitative—highlight the importance of such initiatives. The cooperative’s approach encompasses comprehensive management strategies for liquid waste, soil, fertilizer, animal welfare, and risk across various domains, aiding farmers in adopting better practices and safeguarding the cooperative from potential societal and media critiques.
Synlait's Drive with Pride Program:
Synlait has rolled out 'Drive with Pride', a CSR scheme among its suppliers since 2014, now encompassing 51 farms. The program addresses critical areas like environmental responsibility, health and safety, social responsibility, animal welfare, and milk quality. It features two levels of farmer qualifications—Extra Gold and Gold Elite—rewarding compliant farms with monetary bonuses, thus incentivizing higher standards in line with customer expectations.
Provenance as a Differentiator:
New Zealand's reputation for producing high-quality dairy products, such as fatty powder which dominates certain market segments, facilitates its export activities to 140 countries, making up 95% of its production. The emphasis on value addition is evident from investments in products like infant formula, cheese, and UHT milk. For instance, Fonterra recently established a facility capable of producing mozzarella in just six hours.
Synlait goes further by offering milk from exclusively grass-fed cows and A2 milk, which is reputed to be closer to human breast milk and easier to digest. Synlait’s innovation extends to 'night milking' practices, which increase the melatonin content of milk, purportedly enhancing its sleep-promoting qualities.
The New Zealand dairy industry, the eighth largest globally, continues to evolve with Fonterra processing 85% of the country’s milk. Both Westland and Synlait contribute significantly to national production, with their innovative approaches underscoring the industry’s commitment to sustainability and quality, pivotal in maintaining a competitive edge in the international market.
