Mark Schneider, CEO, has decided to relinquish his roles as CEO and member of the board of directors. Over his eight years with the company, he has actively shaped the company’s portfolio, in line with Nestlé’s strategy and with a focus on high-growth categories like coffee, pet care and nutritional health products, according to the company.

Freixe joined Nestlé in France in 1986. Since then, he has continuously progressed within the company, assuming various positions of increasing responsibility across different businesses, markets and sones. He successfully managed Zone Europe during the financial and economic crisis, from 2008 until 2014. He then took over as CEO of Zone Americas, where he accelerated growth. Following the creation of Nestlé’s new Zone structure in 2022, Laurent Freixe was named CEO Zone Latin America, where he has been successfully leading through challenging conditions.

Freixe has been a member of the executive board for 16 years and, as such, has played an important role in strengthening the strategic direction of the company and its portfolio. With his profound understanding of Nestlé’s culture and values, he has led several global corporate initiatives to improve productivity, increase operational efficiency, simplify processes and drive innovation. Additionally, Freixe has been active  in the Nestlé leadership and training programmes as well as the Nestlé Needs YOUth initiative, which promotes youth employment.

Paul Bulcke, chairman of the doard of directors, says, “I have known Laurent for a long time and highly regard him as a talented leader with strategic acumen, extensive in-market experience and expertise as well as a deep understanding of markets and consumers. He has demonstrated his ability to deliver results in challenging market conditions. Laurent’s curiosity fuels his passion for innovation and positive change. Laurent is the perfect fit for Nestlé at this time. Under his leadership, Nestlé will further strengthen its position as a dependable, reliable company through consistent and sustainable value creation.”

Bulcke continues, “I would also like to express our gratitude to Mark for his significant contributions to Nestlé and for his outstanding, steady leadership in turbulent times. Mark has been instrumental in the great progress we have made on our sustainability agenda. We extend our best wishes to him in all his professional and personal endeavours.”

Freixe says, “I am privileged to have been given the opportunity to continue building and strengthening Nestlé, and I am excited to take on this responsibility. There will always be challenges, but we have unparalleled strengths, such as iconic brands and products, an unmatched global presence, leading innovation and execution capabilities, and above all, exceptional people and teams. We can strategically position Nestlé to lead and win everywhere we operate.”

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Béatrice Guillaume-Grabisch, executive vice president and Group WHO Code Ombudsperson, said: “Compliance is about values, integrity and trust, which are crucial for building a successful and long-lasting organization. Looking to the future, we remain focused on strengthening our compliance measures through collaboration with our direct partners, including those in e-commerce.”

Compliance with the Policy For Implementing the WHO Code (pdf, 5Mb) is mandatory. The report published today highlights the firm and swift actions taken when instances of non-compliance are confirmed, including disciplinary measures. Nestlé also encourages its employees and external stakeholders to share their concerns regarding its compliance anonymously on its Speak Up platform without the concern of retaliation.

This transparent reporting is integral to Nestlé’s desire to make a significant and widespread contribution to the health and well-being of infants and young children, while upholding the highest possible standards in the marketing of infant formula.

Nestlé remains steadfast in protecting, promoting, and supporting exclusive breastfeeding for the first six months of life, followed by the introduction of appropriate complementary foods. The company takes this very seriously, and to that end, it has strengthened its Policy for Implementing the WHO Code. Nestlé’s global policy prohibits the promotion of infant formula intended for babies less than 6 months in all countries as a minimum. Furthermore, in more than 160 countries, the company applies stricter rules and does not promote formula for babies aged 0-12 months as a minimum.

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Overall, organic growth of 2.1%, with positive real internal growth (RIG) of 0.1% for the first half and 2.2% for the second quarter improving in all zones and categories, was seen. Total reported sales dipped by 2.7% to CHF45 billion, with an impact from foreign exchange of -4.4% and net divestitures of -0.4%.

The full-year outlook has been updated, with the company expecting at least 3% organic sales growth. The underlying trading operating profit margin guidance remains unchanged with a moderate increase expected.

Mark Schneider, Nestlé CEO, comments, “We delivered improved volume and mix growth across the group in the second quarter. Nestlé Health Science is recovering as planned and is set for a strong second half. Looking ahead to the remainder of the year, we will continue to drive RIG by launching innovations that address consumer trends and growing our large iconic brands. At the same time, we have seen pricing come down faster than expected. Therefore, we consider it prudent to adjust our guidance for the year, with organic sales growth now expected to be at least 3%.”

Net divestitures impacted sales by -0.4%, largely related to the creation of a joint venture with PAI Partners for Nestlé’s frozen pizza business in Europe. The impact on sales from foreign exchange was negative at -4.4%. Total reported sales decreased by -2.7% to CHF 45.0 billion.

In North America, growth for the beverages category, including Starbucks at-home products, Coffee mate and Nescafé, was close to flat, as continued growth momentum for Starbucks and Nescafé was offset by Coffee mate. In the second quarter, sales of Coffee mate turned slightly positive. Infant Nutrition saw a sales decrease, with robust growth for Nido growing up milks more than offset by a category slowdown, which impacted Gerber baby food. Growth in frozen food was negative as the category remains under pressure, reflecting soft consumer demand and continued price competition. The business delivered improved trends in the second quarter for all segments through sharpened price points and affordable innovations such as DiGiorno Classic Crust.

In the Asian sector, the key growth drivers were Central and West Africa, South Asia and Thailand. The zone achieved market share gains in confectionery and coffee ready-to-drink, with losses in dairy. Coffee delivered mid single-digit growth, driven by Nescafé and supported by new product launches including the new espresso concentrate for cold coffee. Sales for Nestlé Professional grew at a high single-digit rate across most geographies and categories, underpinned by customer acquisition. Dairy posted positive growth, supported by affordable milks and dairy culinary solutions.

For South America, sales in dairy grew at a low single-digit rate, with strong growth for La Lechera and Carnation. Infant Nutrition posted positive growth, with robust demand for infant cereals.

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To submit a news item for inclusion, please contact Suzanne Christiansen at suzanne@bellpublishing.com or Maddy Barron at maddy@bellpublishing.com.

• Breyers launches fermented whey protein ice cream
• Nestlé sees organic growth, maintains momentum
• Danone opens oat-based plant in France

The post Roundup: Ingredients appeared first on Dairy Industries International.

Overall, organic growth reached 7.2%, with pricing of 7.5% and real internal growth (RIG) of -0.3%. Growth was broad-based across geographies and categories. Total reported sales were CHF93 billion, a decrease of 1.5% (FY-2022: CHF94.4 billion). The underlying trading operating profit (UTOP) margin was 17.3%, increasing by 20 basis points on a reported basis and by 40 basis points in constant currency. The trading operating profit (TOP) margin was 15.6%, increasing by 160 basis points.

As for 2024, the company says, “We expect organic sales growth around 4% and a moderate increase in the underlying trading operating profit margin. Underlying earnings per share in constant currency is expected to increase between 6% and 10%.” Further, in 2025, the mid-term targets are “fully confirmed, with mid single-digit organic sales growth and an underlying trading operating profit margin range of 17.5% to 18.5% by 2025. Underlying earnings per share in constant currency should increase to between 6% and 10%.

Mark Schneider, Nestlé CEO, comments, “Unprecedented inflation over the last two years has increased pressure on many consumers and impacted demand for food and beverage products. In this challenging context, we delivered strong organic growth and solid margin improvement with increased marketing and other growth investments. Our free cash flow generation returned to historical levels.

“Looking to 2024, we are prioritizing volume- and mix-led growth with increased brand support, as we enhance value for consumers through active innovation and renovation, premiumisation, affordability and more nutritious options. We will continue to focus capital allocation on our fast-growing billionaire brands, which enables us to deliver dependable growth while enhancing brand loyalty.

“To drive market share gains, our key priorities are delighting consumers through differentiated offerings and focusing on superior execution. We are confident that we have the right strategy, portfolio and capabilities to deliver on our 2025 targets.”

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The new system will use heat pumps with spray dryers, which is a new method for both companies. In addition to the ammonia heat pump for the spray dryer, GEA is providing a second heat pump that supplies hot water at 85°C to heat the entire production line and run the various dehydration processes, as well as cold water at 1.5°C to air-condition the factory.

All this is estimated to reduce carbon emissions and energy for steam production significantly.

Here at Dairy Industries International, we will also be looking at new technologies for the sector, at the International Cheese and Dairy Expo, set for 27 June in Stafford, UK. Along with the Society of Dairy Technology Symposium and Dinner on 26 June and the ICDA Awards and networking lunch, it promises to be a solid two days of all things dairy in the UK. Don’t miss it! Please contact Samantha Bull for ways to get involved, ranging from exhibiting to speaking: sam@bellpublishing.com.

• Suzanne Christiansen, editor, Dairy Industries International.
  Keep in touch via email: suzanne@bellpublishing.com
  Twitter: @dairyindustries or LinkedIn: Dairy Industries International magazine

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In response to increased demand for its Althera and Alfare infant formula brands, Nestlé is currently doubling production capacity at the Nunspeet plant with an additional processing line. For the first time, Nestlé will be using a GEA heat recovery system that is fed by exhaust air from the spray drying plant and, in turn, provides 80°C hot water for its operation. As part of the project, GEA will also equip the complete wet processing technology, which supplies the Nestlé spray drying line with the prepared milk. Installation of the process technology and heat supply system is planned for this year. The plant will go into operation in 2025.

Recovering waste heat from spray dryer to reduce energy consumption

Nestlé’s aim with the investment project is not only to increase capacity, but also to advance its sustainability agenda by reducing carbon emissions, dust emissions and water demand. Exploiting renewable heat energy is a focus of the company’s climate strategy.

“The new plant in Nunspeet will also serve as a Group-wide demonstrator for future-oriented solutions to minimize energy consumption and greenhouse gas emissions in milk powder production. We are already familiar with heat pumps in various production processes. But using them with spray dryers, the most energy-intensive part of the process, is something new for us. The GEA system enables us to reduce the plant’s steam consumption by 75%,” explains Gerben Koopmans, Engineering Manager at Nestlé. For these reasons, the project is executed with subsidy of the Ministry of Economic Affairs and Climate.

Integrating process and heating/cooling technology

“Our integrated solutions combining process technology with heating and cooling technology set a new benchmark in milk powder production, because fusing the two disciplines in production planning and design implementation significantly reduces the plant’s energy consumption and carbon footprint,” says Ronald Hofland, GEA sales manager.

In addition to the ammonia heat pump for the spray dryer, GEA is providing a second heat pump that supplies hot water at 85°C to heat the entire production line and run the various dehydration processes, as well as cold water at 1.5°C to air-condition the factory. GEA’s process technology for the wet line includes state-of-the-art evaporators, inline formula mixers, a homogenizer, high-pressure and high-shear pumps, heat exchangers, valves, as well as all other connecting components and pipework. The heat pump system will provide this process technology with hot and cold water for maximum energy efficiency in operation.

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To submit a news item for inclusion, please contact Suzanne Christiansen at suzanne@bellpublishing.com or Maddy Barron at maddy@bellpublishing.com.

• Buttermilk powder market demand is predicted to increase at a 6.3% CAGR from 2024 to 2034
• Nestlé develops N3 prebiotic fibre milk for China
• ofi wins at FiEurope
• Biocatalysts Ltd successfully concludes acquisitions
• FrieslandCampina Ingredients launches Nutri Whey ProHeat

The post Roundup: Ingredients appeared first on Dairy Industries International.

To develop the N3 milk, Nestlé used a proprietary technology to reduce lactose, a sugar found in cow’s milk, through specialised enzymes thereby generating beneficial prebiotic fibres. Clinical studies showed that these fibres promote the growth of multiple types of bifidobacteria by up to three-fold, delivering gut microbiome benefits in healthy adults. 

As people age, they require specific nutrients to maintain their overall health and well-being. Therefore, to support healthy aging, the Nestlé N3 range includes two products that are fortified with vitamins, minerals, and probiotics to support bone health, muscle growth and strength, as well as immunity. 

Stefan Palzer, Nestlé chief technology officer, says, “We are excited to launch this unique science-based innovation that contains all the key nutrients of milk but is low in lactose and contains special prebiotic fibres that are associated with various health benefits. This milk will serve as a base for the next generation of nutritious products which will benefit many consumers including people with lactose intolerance, and those who want to improve their gastro-intestinal health.” 

Nestlé is the first company to launch a milk product that contains prebiotic fibres coming from the intrinsic lactose found in milk. This was done through its R&D capabilities, including Switzerland and Singapore. Experts located at its R&D centre in Beijing, locally adapted the technology to enable the launch of nutritious milk products specifically tailored to meet the dietary needs and preferences of local consumers. 

Many people are sensitive to lactose in China. Also, the country has one of the fastest growing aging populations. Research shows the aging populations consume less dairy than recommended by local Chinese dietary guidelines. 

David Zhang, CEO, Zone Greater China for Nestlé, says: “N3 will transform the milk-drinking experience for Chinese consumers by enabling those with lactose and gastrointestinal sensitivities to enjoy a glass of nutritious milk without worries. We are proud to be the first market to introduce N3milk.” 

N3 milk will be introduced in other product categories at a later stage, enabling Nestlé to support lifelong health and well-being across all life stages, it says.  

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Fonterra CEO Miles Hurrell says when the Co-op announced the sale in December 2022, it noted the sale was subject to regulatory approvals. These approvals have now been received.

“With our decision to focus on our New Zealand milk pool, the sale of DPA Brazil means we can prioritise our resources to the businesses that are core to our strategy,” says Mr Hurrell. 

Fonterra and Nestlé sold the JV for BRL 700 million, which is approximately NZD 240 million at current exchange rates. These proceeds offset debt related to that business, which means there will be little cash impact on Fonterra’s earnings.

There is a negative foreign currency translation reserve (FCTR) balance of approximately $70 million related to Fonterra’s ownership of the DPA Brazil asset, which will be reflected as a non-cash accounting reclassification in Fonterra’s profit and loss statement.

Final transaction proceeds remain subject to customary post-completion adjustments. 

As with previous one-off transactions, Fonterra’s FY24 announced forecast earnings range of 45-60 cents per share will continue to reflect only the underlying performance of the business.

*The Dairy Partners Americas (DPA) Brazil joint venture was owned 51% by Fonterra and 49% by Nestlé.

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Around 234 farms with a production of around 58 million kilograms of milk are taking part in KlimaStaR Milch. The first evaluations show that the greenhouse gas emissions per kilogram of milk are lower than expected, as they are on average 0.885kg of carbon dioxide equivalents per kilogram of milk.

In the first year of the project, greenhouse gas emissions per kilogram of milk were reduced by an average of 1%.

In terms of food competition, the milk producers involved were able to reduce their food competition by 9% in the first year of the project by reducing the amount of concentrated feed and by specifically adjusting the feed ration. Food competition arises, when edible products are fed to livestock.

Participating farms received a specific and practical analysis of the greenhouse gas emissions from their milk through the project. On this basis, in cooperation with the cantonal advisory institutions and the University of Agricultural, Forest and Food Sciences (HAFL), they have developed individual emission reduction strategies adapted to their location. It is up to the dairy farmers to decide which measures they implement. An impact-oriented premium model should provide positive incentives for implementation.

In the first year of KlimaStaR Milch, the project sponsors built up a competence network, which is broadly anchored in research, politics and practice. It brings together 15 organisations with a total of 30 employees along the entire value chain: cantonal advisory institutions, the Federal Office for Agriculture, the HAFL University of Applied Sciences, the milk trade, milk processing, milk production, control organisations and the animal feed industry.

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To submit a news item for inclusion, please contact Suzanne Christiansen at suzanne@bellpublishing.com or Maddy Barron at maddy@bellpublishing.com.

• Nestlé develops sugar reduction technology
• Doehler Group strengthens its global market presence and ingredient portfolio with the acquisition of SVZ
• Dairy Industries Expo announces new dates!
• Uelzena reports good business year

The post Roundup: Ingredients appeared first on Dairy Industries International.

Using an enzymatic process, it reduces intrinsic sugar in ingredients such as malt, milk, and fruit juices by up to 30%, with a minimal impact on taste and texture. The sugar-reduced ingredients are then used in recipes for various products. There is no need to add sweeteners or bulking agents to replace the volume of the eliminated sugar.

When the patented sugar reduction method is applied to milk-based products, it also increases prebiotic fibres. First clinical studies have shown that these fibres can support the growth of multiple types of beneficial bacteria leading to a favourable microbiome composition in healthy adults.

Stefan Palzer, Nestlé chief technology officer, says, “Sugar reduction across our portfolio remains a top priority. This new technology is a true breakthrough, as we can reduce sugar without adding sweeteners while preserving a great taste, all at a minimal cost increase. In addition, our scientists discovered that the sugar reduction generates prebiotic fibers that support the microbiome, which is an additional benefit. We are now accelerating the global roll-out across formats and categories.”

The sugar reduction was first piloted in cocoa and malt-based ready-to-drink beverages in Southeast Asia and over the past year, Nestlé has already introduced it in factory lines for cocoa and malt-based powdered beverages such as Milo across several countries across Asia, Africa, and Latin America. Since 2021, the sugar reduction technology has been applied to over 200 000 tons of cocoa and malt-based beverages. The roll-out continues, and other product categories such as dairy powders will follow.

The development of novel technologies is part of Nestlé’s continuous efforts to improve the nutritional value of its products, while supporting responsible consumption as part of a balanced diet, it says. The new sugar reduction technology complements a wide range of existing solutions which Nestlé has developed over the years in collaboration with external innovation partners and suppliers. This includes natural sweeteners, sweetness-enhancing or bitterness masking flavours, as well as natural bulking agents such as fibres, cereals and tailor-made dairy and cocoa powders.

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Animal-free dairy proteins derived from fermentation have benefited from over $5 billion in investment backing the development of the technology. Over 40 companies are striving to bring this process to market. For regulatory reasons, the consumer market tests are happening in US. Foods based on fermented protein are not yet allowed in Europe.

However, whatever sums are invested, no-matter how clever the technology, the final decision always rests with the consumer. And while it’s clear that animal-free dairy has a place, it’s going to be a smaller place than its backers think.

Image: Fairlife
In the US, sales of lactose-free dairy are growing faster than plant milks, led by the Fairlife brand.

Here are some factors to consider in thinking about the commercialisation of animal-free dairy technology:

1. Taste & texture

The single most important success factor. Whatever else consumers may be thinking about, they want to choose foods that taste good. So far, and unlike plant-based cheeses and meats, the few products based on animal-free proteins seem to score well, with tastes and texture comparable with the original.

2. What’s the benefit for the consumer?

Once you look at what benefits these products could bring to the consumer, it becomes more challenging.

Animal-free. Contrary to everything you read in the media, most people are still happily eating foods that contain animal ingredients, and they love dairy protein, as testified by growing supermarket sales for dairy protein. Just 3%-4% of the European population are practising vegans, and their numbers are not increasing. And while 25% of the population say they are reducing their meat consumption, that’s meat, not dairy. Consumers who want animal-free already have choices, such as plant-based products. But even these, despite 15 years of marketing, have only niche status. Measured by volume, plant milks (the most successful category) have a 9% share of the US liquid milk market. Plant-based cheese has just a 1% share and in many markets sales fell in 2022.

More sustainable. Sustainability means different things to different groups of consumers. Most people want to go on enjoying animal proteins and dairy producers are working to make that possible, whether that’s moving to regenerative agriculture, reducing carbon emissions, improving animal welfare or using recyclable packaging. And this what people want.

Dairy industry sustainability actions create ‘permission to indulge’, enabling people to go on enjoying their favourite dairy foods with a clear conscience. An example is the surge in demand for products labelled ‘grass-fed’. It’s a message that is read by consumers as: “better for animal welfare, better for the planet, better for my health.”

For example, Hu Kitchen, the world’s most-successful vegan chocolate brand and part of Mondelez, has dropped being vegan and added milk chocolate to its range, using dairy from grass-fed cows. This widens the appeal of the brand to the majority of consumers who enjoy dairy. It reveals the reality of consumer preferences. The ‘animal-free dairy’ message is not the competitive advantage they it might have been five years ago.

Lactose-free. Animal-free dairy is again late to the party. Consumers who want lactose-free are already well-served by plant milks, some which, such as oat, exceed people’s taste expectations. Real dairy has also done a good job of catching up and offering the lactose-free benefit. In Spain, for example, lactose-free dairy outsells plant milks. In the US, sales of lactose-free dairy are growing faster than plant milks, led by the Fairlife brand, and will overtake plant milks in two to three years. Clearly many consumers want animal milk if it doesn’t give any of them any digestive issues, and many prefer it over plant milks because they perceive it as a simpler and more natural product.

And just to really make life difficult, non-animal dairy must carry a dairy allergy warning in the US, so similar are its proteins to those of real dairy. If someone had decided to find a way to deliberately make things difficult, they could not have found a better way.

3. People don’t eat technology

Technology is vital. It is what makes our industry possible. But it does this while being invisible to the consumer. That makes sense. Humans do not eat technology. Painful as it is for many scientists, consumers do not care about your technology, only about “what am I getting?” In fact, the lesson of food history of the last 25 years is that talking about technology in food is a turn-off for most people. The functional food frenzy 20 years ago of adding cholesterol-lowering plant sterols to everything and the GMO debacle remind us that people prefer not to be confronted with added science in their foods.

New markets are most often created by reinventing traditional foods. It is the skill of new product development teams in re-making old foods – adapting taste or texture or making them more convenient for new consumers – which has driven the biggest successes in our industry. The dairy industry excels at this. The successes of Greek yogurt, skyr and others, are all about making traditional dairy products available in a convenient way.

4. Food culture & provenance

Food culture trumps technology. It connects to identity and family and cannot be shifted easily. A picture of a Jersey cow can motivate people to like dairy. But there are no stories and images of animal-free dairy, and marketers will be hard-pressed to match the positive emotional associations that many people have with such an image.

5. Competitive landscape

Animal-free dairy is competing for the attention of the animal-free consumer with plant-based. Two concepts will be fighting for same segment of the market.

In that fight, some consumers will be drawn to animal-free message, others will be put off by the allergen label and the ‘techie’ nature of the product. Animal-free will also be competing with real dairy, which is getting its sustainability act together and giving consumers what they want to hear.

If the plan is for fermented dairy proteins to succeed on a niche basis, say 5% market share of a few categories by 2030 (which is way, way better than plant-based has managed after seven years of vigorous marketing and NPD), that seems credible and possible.

Animal-free proteins could become a niche business in parts of the US and in the Netherlands and Germany, which have a poor food culture and, like the US, have a high percentage of ultra-processed foods in their diet. In much of the rest of Europe these products will be rejected, just as GMOs were, because they run counter to food culture.

If animal-free dairy is to be transformative it must be able to:

• supply all those fractions of dairy that create value, such as lactoferrin for immunity, and also demonstrate scientifically that they work as well as the fractions from real dairy
• or compete with commodity proteins in applications such as cream cheese and ice cream.

In both of the above cases, animal-free dairy will need to do so at lower cost than animal dairy. If anyone thinks that being more sustainable and animal-free is enough to take this technology beyond niche status, they are in for a surprise.

The post The many challenges of commercialising ‘animal-free’ dairy appeared first on Dairy Industries International.

Speaking at the inauguration, Paul Bulcke, Nestlé chairman, said: “We have nurtured direct relationships with generations of farmers around the world. To continue providing people with tasty, nutritious and affordable foods, we need to transition together to a more sustainable food system. The new institute will strengthen our expertise and use our global network to support farming communities and protect our planet.”

With global food systems under pressure, there is an urgent need to accelerate new approaches that ensure a sustainable food supply for a growing world population while contributing to farmer livelihoods.

At the new institute, Nestlé experts screen and develop solutions in key focus areas such as plant science, agricultural systems and dairy livestock.

It builds on the company’s existing plant science expertise in coffee and cocoa. Over many years, Nestlé plant scientists have been contributing to Nestlé’s sustainable cocoa and coffee sourcing plans – the Nestlé Cocoa Plan and Nescafé Plan (pdf, 9Mb) – including the recent discovery of more disease and drought-resistant coffee varieties.

Nestlé is now strengthening this expertise and expanding it to further crops, including pulses and grains. The institute is also working with farmers to trial regenerative agriculture practices to improve soil health and encourage biodiversity. In addition, experts explore novel approaches in dairy farming that have potential to reduce greenhouse gas emissions in the areas of cow feed and manure management.

Jeroen Dijkman, head of Nestlé Institute of Agricultural Sciences, said: “Our goal is to identify the most promising solutions to promote the production of nutritious raw materials while minimising their environmental impact. We take a holistic approach and look at several factors including impact on yield, carbon footprint, food safety and cost, as well as the viability of scale-up.”

As part of Nestlé’s global R&D network, the institute collaborates closely with external partners including farmers, universities, research organizations, startups and industry partners to assess and develop science-based solutions. The new institute reaffirms the company’s commitment to strengthening Switzerland’s unique innovation ecosystem.

Speaking at the official opening, Valérie Dittli, state councilor of the Swiss Canton of Vaud, said: “The new institute is strengthening the Canton of Vaud as a centre of excellence for research and education in agriculture and nutrition. It also contributes to the efforts that are underway to support farmers in the face of climate change. Agriculture is at the core of quality nutrition and in the Canton of Vaud we can count on an innovative ecosystem that brings together partners including agricultural professionals, schools for higher education and private research centers such as the one from Nestlé.”

In addition to its new facilities at Nestlé Research in Switzerland, the institute incorporates an existing plant science research unit in France, and farms based in Ecuador, Côte d’Ivoire and Thailand, as well as partnerships with research farms.

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To submit a news item for inclusion, please contact Suzanne Christiansen at suzanne@bellpublishing.com or Maddy Barron at maddy@bellpublishing.com.

• Elite Imports launches blue cheese wedge with innovated waxed packaging
• Virtual Cheese Awards announces British cheese line up for live Final
• Swiss Milk Day celebrated nationally
• Nestlé and PAI to create joint venture for frozen pizza in Europe
• First Milk launches branded regenerative cheddar
• Godminster announces rebrand

The post Roundup: Dairy Products appeared first on Dairy Industries International.

Nestlé and private equity firm PAI Partners have agreed to set up a joint venture for Nestlé’s frozen pizza business in Europe. Nestlé will retain a non-controlling stake with equal voting rights alongside PAI Partners. The transaction is subject to employee consultations and the approval of regulatory authorities and is expected to close in the second half of 2023. Financial details are not being disclosed.

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Supported by the recovery in foodservice channels after the initial Covid-19 pandemic and continued strong retail channel sales, dairy demand firmed globally, according to Richard Scheper, dairy analyst for Rabobank. “Combined with lower-than-anticipated milk production growth in the main exporting regions and exceptionally strong Chinese import demand, dairy product prices rallied to elevated levels in 2021,” says Scheper.

He adds, “This year’s ranking is characterised by the movers and the shakers.” Both turnover growth and strategic activities were more significant than in recent years causing movement in the ranking. Strategic repositioning and M&A activities, for example, resulted in the entry of Froneri and the departure of Kraft Heinz in the ranking. The second half of the leader board remains crowded with less financial separation between the companies. In 2020, eight companies in the second half of table were separated by less than US$1bn. This year, four companies are within US$0.15bn in sales.

Meanwhile, with numerous product launches, dairy alternatives, ranging from beverages, yogurts, frozen desserts, cheese, and hybrid products, have become more common in the product portfolio of Top 20 companies, making it more difficult to extract pure dairy revenues. As a result, the designation of dairy is also becoming much more blurred.

The four global cooperative giants are bunched in the sub-top of this year’s ranking. Each is facing some degree of limitation for organic growth in their domestic market. In 2021, DFA continued its integration of the Dean Foods assets, while both Fonterra and FrieslandCampina disposed of non-core assets.

Gradually, more dairy companies are aligning their climate ambitions with the Science Based Targets initiative (SBTi). To date, eight of the Top 20 companies have made a public commitment to (some of) the SBTi targets or have targets that are considered aligned with SBTi. Rabobank expects this number to grow in the near term as evaluation and target setting are still underway. As such, dairy companies are working on their climate and sustainability targets for 2030, but also adding net-zero ambitions for 2050.

“Looking forward to next year, we expect another strong year for combined Global Dairy Top 20 turnover as the underlying dairy commodity prices hit record or near-record levels around the globe on the back of the war in Ukraine and escalating inflation,” says Scheper. “However, weaker global dairy demand in the second half of 2022 is anticipated due the combination of Covid-related lockdowns, inflation impacting consumers’ purchasing power, and other economic headwinds. Due to the weakening of local currencies – especially the euro against the US dollar, some companies might struggle to maintain their positions and gains in this year’s ranking.”

The post Rabobank’s Global Dairy Top 20 shows increased turnover for industry appeared first on Dairy Industries International.

The cross-industry initiative pursues the goal of jointly gaining scientifically-based knowledge in order to make the Swiss dairy industry more sustainable and competitive in terms of climate protection and resource efficiency.

A tailor-made mix of measures is aimed at reducing greenhouse gas emissions from agricultural milk production by an average of 20%. The initiative is supported by the Federal Office for Agriculture (BLW) and will include around 300 pilot farms.

Bern University of Applied Sciences (HAFL) and ETH Zurich are supporting the project as scientific partners.

As part of a biological cycle, cows convert grass unusable for direct human consumption into nutrient-rich milk. But the question arises as to how dairy farming can further reduce its impact on the climate and how ruminants can also be part of sustainable and site-specific agriculture in the long term.

According to estimates by the United Nations, the dairy industry accounts for around 3% of total global carbon emissions. Although it is not one of the major causes of greenhouse gas emissions, solutions must be found, especially with regard to methane emissions from cows.

Further progress in the area of climate protection is also in the prime interest of local agriculture and milk processors, because, according to scenarios from the Swiss national centre for climate services, the climate in Switzerland is likely to be drier and hotter in the future.

KlimaStaR Milch aims to create a common basis for a more sustainable, resource-saving and site-specific Swiss dairy industry and to position it successfully in the long term.

By joining forces, the participants want to contribute to further reducing the climate footprint of milk and of dairy products, and thus also meet a growing consumer need. To this end, the initiative starts at the origin of the supply chain, milk production itself.

In order to achieve GHG reductions of 20%, it starts with four central points: feeding, herd management, energy and farmyard manure. Scientific survey methods and specially developed analysis technologies are used to measure progress.

Project sponsors have also set themselves reduction targets of 20% in the area of the so-called feed-food competition. In this context, food competition refers to the circumstance when food is used to feed animals, which would also be suitable for human consumption. This is the case, for example, when wheat is fed to cows.

Land competition arises, when animal feed comes from cultivated areas on which foodstuffs could also be grown. These undesirable interactions should be reduced with the help of resource-saving feeding methods and roughage-based dairy farming.

The initiative is scheduled to run for six years. From the scientifically supported results obtained, everyone involved expects partnership-based knowledge, which will allow the implementation of targeted measures beyond the project and thus help to further reduce the greenhouse gas emissions of the Swiss dairy industry, which already are moderate by international comparison.

KlimaStaR Milch contributes to the respective climate ambitions of Emmi and Nestlé, both of which want to become climate-neutral by 2050.

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Over a period of three years, Nestlé Germany will work along with the Frese dairy farm in Northern Hesse, which has 135 cows, in order to make this Hochwald farm a model for other farmers.

The project is led by the Hochschule für Wirtschaft und Umwelt Nürtingen-Geislingen (HfWU), with scientific and technical advice from project partners Thünen Institut für Betriebswirtschaft and Bodensee Stiftung.

To start, experts from HfWU will calculate all emissions of the farm operations. This will use 30 defined measures to reduce greenhouse gases as much as possible. That is, for example: optimal feeding of the cows, gas-tight slurry storage, construction of a biogas plant, energy production by photovoltaic systems and optimised herd management to increase milk performance.

In parallel, more humus will be built up by regenerative management of the field and grassland surfaces, as well as lakes and trees, so that more greenhouse gases can be stored.

The climate milk farm also aims to reduce its use of pesticides and mineral fertilizers.

The aim of the pilot project is to get farm emissions to net zero after three to five years.

Markus Frank, professor of plant health management at the HfWU, sums up the project: “It takes decades until hedges and trees grow really big and the soil has built up enough humus. Therefore, in our joint project, we model how much carbon dioxide the plants and the ground can really store.”

“A kilogram of milk is currently causes about 1.1 kilogram of carbon dioxide. We want to reduce the carbon footprint of our dairy products in the coming years. For this we need to know exactly, what measures are ecologically and economically useful. Our joint pilot project with Frese helps us to gain valuable insights, as we can sustainably reduce greenhouse gases,” explains Noura Rhemouga, sustainability manager at Hochwald.

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