France occupies a select place in world dairy, as a large producer of cow milk and its products, but also other small ruminant milks such as goats and sheep. It accounts for 16 per cent of total cow milk intake, but also 14 per cent of the total intake for sheep milk, and 30 per cent for goat milk, according to the report. The last number makes it the top EU country for goat milk production. While overall milk production has dropped for cow milk, both the sheep and goat milk production went up in 2023, according to the IDF.

PDO milk supply

The amount of PDO products shows its importance to the industry there, with 51 different dairy PDOs, including 46 cheeses, according to Benoît Rouyer, economic outlook director at CNIEL, the French Dairy Inter-branch organisation. It is also home to five mountain areas which amount to 13 million hectares of farming. Additionally, five large processors – Lactalis, Danone, Savencia, Sodiaal and Bel – have products that are known globally and operate in many countries.

In a way, President Macron, who last month noted that the young chefs of France should be heading out to the world to upgrade and move French cuisine forward (having been outdone by Denmark lately), perhaps should look at all the dairy giants that quietly and persistently spread their products globally.

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

The post The French in focus appeared first on Dairy Industries International.

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

• Müller launches Cadbury Milkshakes
• Arla Foods launches review of its UK speciality cheese
• Lactalis UK & Ireland predicts cheese trends for 2024 and beyond
• The cheese board wins
• GCMMF launches Sagar skimmed milk across India
• Value growth in UK cheese market, Mintel reports

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

However, with consumer confidence beginning to rise, monetary policy having its desired effect, and shoppers increasingly seeking out versatile and convenient food products, there’s plenty to be optimistic about in 2024 and beyond.

Heloise Le Norcy-Trott, group marketing Director for Lactalis UK & Ireland explains: “After two years of contracted volume sales^[ii], the cheese market has an opportunity to regain momentum. Looking forward to 2024 and beyond, these are the cheese trends we think retailers should be aware of.”

Recovery of branded cheese:

When the UK cost of living crisis began in late 2021, the tightening of budgets subsequently led to cost saving behaviour from consumers, including many switching to own label products. While the UK is by no means out of the woods, there’s reason to be optimistic for 2024. The Bank of England has predicted inflation will keep falling in 2024[iii], and GFK’s long running consumer confidence index now measures at -30 for October 23, up from -47 last year. As a result, we expect a recovery in market share for branded cheese as pressures on shopper spending ease, especially with cheese types where quality and taste are emphasised, such as continental. As part of this recovery, embracing innovation to drive excitement back into the category will be paramount. Whether it be alternative flavours or growing categories like hot eating cheese, new product development allows brands to differentiate themselves by offering something different.

Premiumisation driving growth:

Even though grocery prices are increasing, and consumers have been choosing to buy fewer units of cheese, premiumisation still has the potential to drive market growth. This is likely to come from a combination of new and old consumer habits – exploring new ways of enjoying cheese, like enjoying hot and using it in different recipes, and rediscovering varieties they previously enjoyed. With cheese being a household staple, it’s important that the industry and retailers continue to adapt, expand, and innovate their offering in the coming months, to cater to changing consumer demands as shoppers get back into cheese.

Cheese as a source of protein:

There is a growing interest in how what we eat and drink affects our bodies – with more than half of consumers reading product labels more than last year[iv]. Therefore, one trend to look out for is consumers seeking out cheese for its nutritional benefits. For example, cheese is packed full of essential dairy nutrients, such as protein, with it providing 15% of our daily requirement[v]. Unlike some plant-based proteins, cheese contains all of the nine essential amino acids (the building blocks of protein) that our bodies need. Protein is vital for many different functions in the body including building and maintaining muscle and supporting healthy bones but also for helping to make other body tissues and organs, the antibodies in our immune system and haemoglobin, an important protein that carries oxygen in our blood (British Nutrition Foundation 2023).

Everyday pleasures and special occasions:

As confidence returns, shoppers are likely to be open to spending more on cheese as an affordable indulgence. That’s not just in the run up to Christmas, as seen in the last two years, but all year round, enjoying premium, hot eating, blue, and selection packs, as well as hard and soft specialty cheeses, as treats for ‘me’ moments and celebrations with family and friends. Cost pressures are resulting in consumers having more ‘big nights in’, which are often major cheese eating occasions. Recent research shows 2 in 5 (40 per cent) of us plan to go out less often^[1], and three fifths (61 per cent) are spending more cautiously[2], but we still want affordable indulgence, when we treat ourselves or entertain at home. Speciality cheeses and hot eating cheese options offer retailers an additional way to tap into the ‘big night in’ occasion.

Growth in hot eating cheese:

Hot eating is currently one of the highest grossing cheese categories, offering quick and tasty hot meal-time solutions, and another area where retailers can encourage premiumisation. Président A La Carte Crispy Bakes with Brie and our new Seriously Cheese Burgers, which launched in July, are the fastest growing and top contributing brands to category value and volume growth.[vi]

Increased use of cheese as a meat alternative:

Cheese is a major recipe ingredient in many popular meat-free dishes, while hot eating cheese products provide consumers with a tasty vegetarian meat replacement they can enjoy at any time – while also appealing to consumers trying to reduce their meat intake, as an alternative to meat protein. Health is a growing consideration for many, and our recently launched Seriously Cheese Burgers represent a new sub-category within the hot eating fixture, which previously focused on indulgent products like baking camembert and fondue.

More convenient formats providing cooking and recipe inspiration:

Time-poor consumers are likely to be drawn to cooking with cheese using timesaving options such as grated and sliced formats, which have seen sales rising as work patterns normalise. Sliced and grated – the UK’s second biggest cheese subcategory after block cheddar – increased +16% and fell just -0.5% in volume[vii], in line with the overall cheese trend. Grated cheddar has seen a proportionately larger rise than block cheddar in volume bought per trip, likely due to its comparatively lower rise in average price, but also its convenience for busy shoppers. The latest addition to Lactalis UK & Ireland’s grated offering, Leerdammer Grated in 160g resealable pouches is an authentic Dutch cheese that is finely grated for perfect melting, offering an alternative to cheddar in recipes, with a unique flavour.

Despite being an everyday essential, the ongoing cost-of-living crisis, inflation and Brexit have unsurprisingly impacted how frequently consumers are buying cheese.

Greater personalisation:

New consumers coming into the market are likely to seek ways to express their individuality and personalise how they use cheese, based on imagination and personal preferences. As these shoppers recognise the recipe potential for cheese and the varieties that are available, we can expect greater creativity in its use in planned dishes, and making use of leftover cheese. In addition to the growing range of recipes available online, TikTok and other social media will increasingly impact people’s cheese tastes and usage.

With the demand for affordable indulgence driving the category, we can expect a blurring of the distinction between speciality, every day, and recipe cheese, and cheese lovers ‘mixing it up’ with treats like brie on toast. While it’s unlikely British consumers will forsake cheddar as the nation’s favourite cheese, they will increasingly want to widen their cheese repertoire, and products like Lactalis’s Leerdammer slices, the number #1 cheese slices brand in the UK in value sales,^[viii] will encourage them to think ‘beyond the block.’

The post Lactalis UK & Ireland predicts cheese trends for 2024 and beyond appeared first on Dairy Industries International.

Giuseppe Ambrosi, the EDA president, opened the proceedings, noting, “We were and we are standing fully aligned behind the ambitions and the objectives of the EU’s Green Deal agenda. We did not see the EU Commission acting on the basis of some demands for the law making process: a science-based, impact assessed approach and a certain level of stakeholder involvement.” He noted that while the EU even publicised its launch of agricultural policies with a video of milk processing, the dairy industry has been asked to play less than an active part in the agenda, which “intends nothing less than to completely change the way we operate our businesses.”

He called on the assembled to “make dairy heard in the political space in Brussels from the very beginning of the next legislative term in July 2024. We simply cannot afford five more years in defence. When I say we, I mean the European lactosphére together with all those who want to reach the 2050 ambitions for our continent.”

As Jan Derck Van Karnebeek, CEO of FrieslandCampina said, “The way we do dairy in Europe, we can do it right, and we should fight and stand for it.” He further opined that the ways farmers operate is not always understood by politicians and government. “They need to be viable from the farmers’ perspective. Biodiversity and animal welfare are complex to navigate, but farmers have a vital role to play here. Sustainability is about doing the right thing by the planet, but it needs to be enabled by economics,” he added. At FrieslandCampina, “We reward for environmentalism and sustainable outputs are a structurally important part of the journey. I’m a bit of an optimist. Customers are awake to fact that the environmental impact has financial value, and I think that’s a good thing.”

He asked the assembled that they consider moving towards common measurements for the dairy supply chain in the areas of sustainability. “We should not be competing with each other on clever market claims. Rather, it should be on performance sustainability.”

Charles Brand, EVP for processing solutions and equipment at Tetra Pak, noted that dairy is a very big part of the company’s strategy, and it’s about enabling the transition to a more sustainable dairy industry. Tetra Pak is leading a global processing taskforce at the Global Dairy Platform. “It is important that legislators listen to our responsible voices, from producer to consumer safety,” he said, noting that recycling targets and packaging legislation is not uniform from country to country, and as a single market, the EU should have uniform laws. “it’s not acceptable for some parts of the market to have targets, while others do not. It is also important that legislators consider the entire supply chain.”

Thierry Clément, CEO of Lactalis Groupe, detailed what support for farming entails. “If we have a happier farmer with a good living, they can invest for a more normal life. We need to drive this by policy and by having the economy to support this, and to make sure we have contact with the dairy farmers, through the dairy chain and not through regulation.”

The issue of European herd size came up, and Peter Giørtz-Carlsen, the COO of Arla Foods, noted that, when the issue of nitrate emissions arose, often it immediately turns to the number of cows, and not to anything else that may impact these emissions. “Regenerative agricultural solutions should be explored in parallel,” he said.

Karnebeek agreed, noting there are government measures underway to reduce livestock numbers in the Netherlands, where FrieslandCampina is headquartered. “This may remove the availability of three million litres of milk, but what contingency measures are in place?” he asked. The question also becomes of mitigating the environmental impacts of the cows, and using best practice to ensure that the maximum amount of milk is produced with the smallest carbon footprint. “Output decreases should be the contingency plans,” after all the other measures have been taken, he stated.

Carbon credits

Carbon credits were a topic of discussion. Karnebeek did warn about the impact of carbon credit trading outside of the dairy supply chain: “The market mechanisms that have made carbon credits tradeable outside the dairy supply chain, this is a real risk and should be taken into account when dealing with them. Carbon sequestered by farmers could be bought by an oil company as part of its green agenda, and this is not a good idea.” The IDF’s president, Piercristiano Brazzale, weighed in, agreeing the credits should remain inside the sector and not go outside.

The sector, he reminded the audience, has to cover the increased population by 2050, and while the US and Pakistan may be able to cover some of the estimated 33 million tonnes shortfall for global dairy by that year, the EU will also have to cover some of this gap.

When looking at Ukraine, Arsen Didur, executive director of the Dairy Union of Ukraine, praised Lactalis for its continued dairy production inside the country. Clement thanked him and noted, “It is incredible what they are doing in Ukraine. When this is over, we agree we will invest, and we have a willingness to rebuild for the future – it’s an incredible country. They are true dairy heroes and it is a positive signal in the EU for enlargement report. Our best to you and your people.”

The MEP view

In the afternoon, it was the European MEPs’ turn to discuss the sector. Paolo de Castro, an MEP from Italy, pointed out that the new CAP didn’t seem to be thinking of the farmers when it was developed. “We all know that ecological transition is absolutely necessary, but we have the feeling it wasn’t built with the farmers and the agricultural sector, but against them. They keep pointing the finger at agriculture, and there is a lack of balance that we have never seen before between the different European commissioners.”

De Castro did come with some good news, on the finalisation of the new EU regulations on GIs. “GIs are one of the successes in EU history and they are a €90 billion asset that has been working very well. This will help it grow even further, and get stronger,” he noted.

He also observed that the GIs should “help us to get our food sector even closer to public opinion. We don’t have the same public opinion support that we used to have for decades. Previously, whoever attacked farmers in French, the French president would defend them, and this is no longer the case. There is also not one day that goes by without Italian commenting that farmers mistreat their animals. We need to re-establish the link between the public and the producer. If we don’t it only impacts our industry negatively.”

As Alexander Anton, secretary general for EDA, observed, “The cow is more than just a national treasure, it is our industry. Dairy GIs account for 10 per cent of the total issued, and they are ambassadors for European agriculture.”

Speaking of science

The final session was devoted to the science, discussing “Dairy Sustainability at Work.” The moderator, Sanne Dekker of FrieslandCampina, stated, “Climate change is already happening, and even our cows notice. Who is to blame for this? All of us, but polarisation and fighting about it doesn’t help. It is important to share our learnings, so we are working together on sustainability.”

Dr Wilhelm Windisch, of Technical University of Munich, reminded all, “Ruminant livestock is the key to sustainable agriculture. We are approaching the planetary boundary of the agricultural area. We cannot increase the size, as it is limited. It will be more limited in the future with climate change, as it takes away land.” We also have to stop competing with livestock on feeding, he noted. Another issue is the way livestock turns non-arable grasslands into food. For example, one-third of the wheat harvested is turned into bread, while the other two-thirds of the wheat is not edible by humans. The other way is to feed it to livestock, which then produces manure for fertiliser and enriching the soils. He called for 100 per cent use of biomass material, via both making of food products such as bread, and the rest being used to feed livestock.

He exploded the myth of cows being climate killers with methane. “In Germany, there are fewer ruminating livestock than in pre-industrial times. There is less of emission of methane from livestock production than in pre-industrial times. The carbon dioxide equivalents massively overrate the climate impact of European ruminants. It is a very strong greenhouse gas, but it quickly degrades. Methane remains constant, whereas the carbon dioxide emissions from fossil sources accumulates. Methane has a very quick half-life of only 12 years. This is not accounted for in the GMP 100 calculations. If we shot all the ruminants in Austria and Germany, we would have a reduction of less than one per cent. It’s nothing.”

Another myth is that too many ruminants ruin the environment. “The biomass will degrade whether you use it or not,” he stated. “The only thing is if we don’t use it, it will be a missed chance to produce food. If vegan, you need double the amount of area to feed a person. NGOs forget the evidence of the non-edible biomass.” Proper circularity of the food system is the key to feeding everyone, he stated. “Our challenge is to optimise feed value, efficiency and all the livestock management.”

The post Up for the challenge appeared first on Dairy Industries International.

It will be the one-stop show for everything dairy, from judging and equipment to samples, and everything in between.

The Society of Dairy Technology‘s Summer Symposium and dinner will also be held on 26 June, offering a further opportunity for the dairy industry to gather together in one place.

We already have an exciting slate of exhibitors so far, including: ALPMA, CEM, Chr Hansen, Fristam Pumps, IFF, Lactalis, Marchant Schmidt, Masterpack, Ornua, PFM Packaging, Procudan, Sycamore Process Engineering, Vikan, Wafilin Systems and Water Technology Ltd.

If your company is not listed, please contact sam@bellpublishing.com for opportunities to get involved.

With an exciting programme of keynote presentations (including Ecolab as a keynote speaker) covering all sectors of the dairy industry in free-to-attend sessions on the exhibition floor, as well as a programme of workshops and judging, the International Cheese & Dairy Expo is much more than just a trade show. From pasteurisers, tanks and silos to cheese cultures, fruit flavourings and emulsifiers, though to wrappers, cutting machines, metal  detectors and logistics – the entire dairy processing chain will be represented, from cheese to yogurt and everything in between. Don’t miss it!

The post Let’s all go to the Expo appeared first on Dairy Industries International.

Giuseppe Ambrosi, EDA president, opened the proceedings, noting, “We were and we are standing fully aligned behind the ambitions and the objectives of the EU’s Green Deal agenda. We did not see the EU Commission acting on the basis of some demands for the law making process: a science-based, impact assessed approach and a certain level of stakeholder involvement.” He noted that while the EU even publicised its launch of agricultural policies with a video of milk processing, the dairy industry has been asked to play less than an active part in the agenda, which “intends nothing less than to completely change the way we operate our businesses.”

He called on the assembled to “make dairy heard in the political space in Brussels from the very beginning of the next legislative term in July 2024. We simply cannot afford five more years in defence. When I say we, I mean the European lactosphére together with all those who want to reach the 2050 ambitions for our continent.”

As Jan Derck Van Karnebeek, CEO of FrieslandCampina noted, “The way we do dairy in Europe, we can do it right, and we should fight and stand for it.” He further opined that the ways farmers operate is not always understood by politicians and government. “They need to be viable from the farmers’ perspective. Biodiversity and animal welfare are complex to navigate, but farmers have a vital role to play here. Sustainability is about doing the right thing by the planet, but it needs to be enabled by economics,” he added. At FrieslandCampina, “We reward for environmentalism and sustainable outputs are a structurally important part of the journey. I’m a bit of an optimist. Customers are awake to fact that the environmental impact has financial value, and I think that’s a good thing.”

The full story is available in the December issue of Dairy Industries International. Also, keep an eye out for exciting Dairy Industries Expo news, coming very soon!

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

The post Delivering dairy sustainably appeared first on Dairy Industries International.

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.

The post Fonterra and Nestlé complete sale of DPA Brazil appeared first on Dairy Industries International.

Record-high turnover in 2022, due to inflated dairy commodity prices

Fueled by a second round of war-induced inflation, EU dairy product prices rallied to new annual average highs. In Oceania and the US, milk powder prices were also elevated. At the same time, lower-than-anticipated milk production growth in the main exporting regions and decent domestic demand contributed to an overall tight dairy market with limited exportable surpluses during most of 2022.

Overall, year-on-year average price gains in butter, cheese, milk powders, and other dairy products set the stage for double-digit turnover growth in local currencies in 2022.

Higher revenues counteracted by a surging cost base and unprecedented milk prices

“In the end, most turnover gains were absorbed by exploding costs, leaving little left on the companies’ bottom lines,” explains Richard Scheper, dairy analyst at Rabobank. “Many dairy companies paid record-high average farmgate milk prices to offset large farm input costs.” At the factory gate, rising energy costs and the availability of natural gas – especially in Europe – were the largest concerns for energy-intensive dairy processing. Costs for other components, such as logistics, packaging materials, and labor, also escalated in 2022.

A stronger US dollar influenced position changes in the ranking 

“For non-US-based dairy companies, turnover gains in local currencies were partly or even largely offset by the stronger US dollar, giving rise to position changes along the entire list and contributing to the entrance of Ireland-based Glanbia,” according to Scheper. The majority of Glanbia’s revenues are derived from sales in the US and the company recently announced that it will switch to reporting in US dollars instead of in euros in the near future.

The Canadian dollar also strengthened against many other currencies – including the euro. This helped Canada-based Saputo (10th) solidify its position in the top 10 and bumped Agropur up one spot to 15. Both companies have considerable sales volumes in the US, giving them a competitive advantage over the 11 companies on the list reporting in euros.

FX developments in 2022 were particularly unfavorable for dairy companies reporting in New Zealand dollars, renminbi, and yen, contributing to New Zealand’s Fonterra dropping three spots, China’s Yili and Mengniu losing turnover gains in US dollar terms, and Japan-based Meiji, a longstanding Top 20 company, exiting the list.

Mergers and acquisitions: Less activity and smaller deals

In 2022, merger and acquisition activity was nearly on par with the prior year, with almost 25 deals. However, 1H 2023 activity slowed both in the number and size of deals, with about eight deals announced versus approximately 12 deals in the first six months of 2022.

The post Record-high revenues reshuffle Rabobank’s Dairy Top 20 ranking appeared first on Dairy Industries International.

It had also failed to publish its milk supply agreements and required farmers to sign up to them via email. Lactalis Australia said it fully supported the code of conduct and there were no breaches in subsequent years.

The post Australia fines Lactalis for conduct breach appeared first on Dairy Industries International.

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

• GEA inaugurates technology center for sustainable protein industry
• Vacuum on demand: Control system improves milking process efficiency, reliability and performance
• Michael Smith Engineers expands territory for Viking Pumps
• Alfa Laval launches new streamlined Unique Mixproof CIP and Process valves
• Lactalis switches hoses in Serbia and Croatia
• Electric belt hoists for the brining process

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

Lactalis, which has 270 production sites in 52 countries, is using two long-life hoses that are six and a half feet in length and have a bore size of two inches after replacing a competitor’s rubber hose at its factory in Sombor, Serbia.

Engineers at Aflex have developed the hoses to meet the latest hygiene standards. The patented PTFE-lined hose, with standard 316 stainless steel braid EPDM cover, will ensure efficient product transfer and handling with extended life, the company says.

With flexibility and kink-free design requiring less force to bend than competitor smooth bore products, FaBLINE offers Lactalis a hose solution throughout production processes.

Aleksandar Rnjak, maintenance manager at Somboled, part of the Lactalis Group, says, “The hoses are exposed to CIP cleaning before production. After hanging the hoses on the fruit paste container, the hoses are rinsed and sterilised with steam at 280℉ at 50 PSI in the line.

“The hoses have shown exceptional durability and flexibility, and the safety of the operators connecting the tank with fruit paste and the system on the yogurt line has increased.”

Alan Varelija, sales engineer for the Balkans region at WMFTS, states, “Lactalis was not satisfied with the hose life of the previous rubber hose it was using, because the cover wore out every few months. The hose is dragged along the floor, so we offered a Safeguard option. The new hose now transfers milk and yogurt and it is regularly cleaned with CIP chemicals without any change almost a year after Lactalis began using it.

“Even if our outer protection comes away or gets damaged when the hose is dragged along the floor, the hose doesn’t lose its integrity, which eliminates the potential of premature failure.”

At another Lactalis’ production facility in Zagreb, Croatia, it has switched to using FaBLINE hoses on a filling machine which handles yogurt and yogurt fruit filling. Lactalis is using 16 long-life hoses that are 2.6 feet in length and have a bore size of 0.375 inches after replacing a silicone rubber hose.

FaBLINE hoses provide up to twice the flow of similar sized convoluted delivery hoses, for a faster, more efficient processing solution, according to Aflex.

Marin Ćosić, deputy head of maintenance at Dukat Dairy Industry, part of the Lactalis Group, says, “On the yogurt and fruit filling machine, the working conditions are demanding in terms of high sterilization temperatures (100℉), and exposure to acids and alkalis for washing the hoses through which the product passes. With the aim of avoiding the possibility of contamination of the product, we decided to install the FaBLINE hose on the machine for filling yogurt and fruit yogurts. The hoses turned out to be very good and long-lasting.”

Alan Varelija, sales engineer for the Balkans region at WMFTS, adds, “The existing silicone rubber hoses from another company on a filling machine were outdated, and the risk of contamination was very high. The customer measured its existing connectors, so we were able to offer an exact match.” Further information can be found at www.wmfts.com.

The post Lactalis switches hoses in Serbia and Croatia appeared first on Dairy Industries International.

The dairy industry, by virtue of its central place in a large portion of humanity’s lives, is also subject to whatever global and local issues are forthcoming. Giuseppe Ambrosi, the European Dairy Association president, notes the industry through the last decade has faced one crisis after another, with the year 2022 seeing everything from the war in Ukraine to the European Union’s implementation of the farm to fork strategy. “We are dairy realists, so it might get worse, but as dairy optimists we know we can cope with almost any challenge. Turbulent times are our daily dairy business.”

That being said, he noted, “Today we have more than turbulent times. We have the most serious crisis so far, with the impact of the Russian war and the shadow of climate crisis affecting not only our business like never before, but now in Europe and worldwide, we see the issue of food security as part of political agenda, with a 50 per cent food inflation rate in some products.”

Ambrosi said the EU commissioner had been alerted that the EU’s farm to fork strategy would lead to a 10 per cent drop in agricultural output, and to a decline in farmer income, while consumer prices would go up. It will also export agricultural greenhouse gas emissions, and simply move the problem elsewhere. The EDA was worried that the argument didn’t resonate with the EU at the time. “However, things are starting to change in Brussels, and there is now a broader resistance to the ideological approach to farming and agriculture. EDA has been the voice of reason in Brussels’ policy debate. The idea of economics and a stable, affordable food supply has finally gained momentum. We all want to reach climate neutral by 2050 and the only way is dialogue and support of those who can make a change. Dairy is a change maker,” he stressed.

“It’s not about punishing the farmer, all about supporting and incentivising the farmer. We do exactly that. We need to make sure we are part of the solution for achieving climate neutral by 2050 and maybe before. You can count on us to support the Spanish EU presidency with all our force. We all know milk is essential for life. Viva Europe y la latte.”

Ignacio Elola, president of Fenil, observed the spiralling prices of gas and energy has been hitting the sector hard, with the entire value chain suffering the consequences of this difficult situation, and with unprecedented costs of raw materials such as grain. He noted, “On 15 November, the world’s population passed eight billion, which means eight billion people who need sufficient, balanced, sustainable and quality food. Dairy will be a key fixture in supplying this.

“We are committed to Europe, but we need a regulatory approach that addresses the uncertainties,” he added. “We need to protect regional brands that are part of our culture and our countries, as our industry is a driver of change, and this convention proves that.”

Strategic sector

Luis Planas, the minister of agriculture, food and fisheries in Spain, stated, “The presence of the dairy sector is fundamental for the farming sector, and for our land, it is a strategic sector in Spain and Europe.” He also noted that the war in Ukraine and climate change, with issues such as abnormally high fertiliser prices are affecting the sector. The EU has allotted €179 million to support the bovine, ovine and goat sectors, and this is set to increase under the new Common Agricultural Policy (CAP) to €321 million per year – an increase of 30 per cent for the sector, with 17 per cent more to the sheep and goat segments.

“It is important to keep on supporting the dairy sector in our promotion actions,” Planas said. “We have to ensure that each link of the chain creates value. I believe dairy is a key sector in Spain, in Europe and the world as well.”

Danone’s viewpoint

“We at Danone are dairy optimists, and we believe dairy can have a bright future. We believe in the power and goodness of milk, and the need for healthy and natural products,” Danone CEO Antoine de Sant-Afrique told the audience. “Milk is at the heart of what Danone does, and we are convinced there is an exciting future for it. However, you cannot be a dairy optimist without farmers. Farmers are at the very heart of it. It is very clear that without their passion and dedication, there would be no Danone yogurt, no Activia and no Actimel. The role of the farmers is absolutely crucial, by fighting climate change through carbon capture and opening plenty of opportunity.”

That being said, it doesn’t mean we don’t face significant challenges, he warned. “The bad news is the challenges aren’t going to disappear. The first one is the economic challenge since the war in Ukraine. We all know about feed and fertiliser, and its impact on both the short and long terms, as some farmers think there is not a future for their kids. Second, life is made worse for the consumer and people have less money to invest in our products.

“Another crisis is the environment – we are at the forefront. Dairy is being singled out due to the methane impact on global warming and its short-term impact. It is an issue that will stay with us, and a key issue on which our governments and NGOs are calling us to action. Regulations being implemented in the Netherlands, Belgium and Ireland on the environment, are feeding less factual debate on how dairy is not good for climate or health, and there the communications battle is becoming fundamentally defensive. Defensive battles are not won easily.

“They also lead nowhere. Stop being defensive, and start being proud of what dairy can deliver to the consumer and more people – products that are healthy, natural, but facing the challenges. We all need to take ownership of the conversation. We need to turn the challenges we are facing into leadership opportunities and be part of the solution.

“At Danone, we have seen first-hand the natural potential and resilience of a farmer and farming system. We have been working on it since 2016 – it takes money, learning, transformation and technology tailoring, as no two farms are alike. We are building a network of pioneering farmers, with simple principles of technology, such as restoring soil health and biology, working on crops and bringing biodiversity back. We have proven we can reduce greenhouse gas emissions, and are moving towards a 1.5-degree limit. We can do all of that and create a model that is profitable and viable. It is a major opportunity for the dairy industry.

“None of us will succeed alone. Collectively, we have a critical role to play. Working together in the private sector, along with NGOs and governments, and joining forces with other initiatives such as Pathways to Dairy Net Zero, I am confident that we can bring EU to reducing emissions of dairy in a way that maintains economic structure and social fabric of industry and countryside across Europe. The EDA can be absolutely instrumental in setting a new standard for the European industry, and give us back competitive advantage. By taking back the narrative and claiming the goodness of our product, we can tackle the challenges we are facing together. I believe it can be done.”

Outlook

Mary Ledman, global dairy strategist at agricultural bank Rabobank, explained that its 2030 global dairy outlook looks at where the product is in demand and where it will come from. She noted that China has increased its self-sufficiency by 10 per cent since 2017 to 80 per cent today. “China’s drive is having a ripple effect through our industry,” she observed.

Demand is expected to grow to 120 million metric tonnes by 2030, from its current 85 million. “When we look at who can supply that, it is falling very short,” she stated.

Around 55 per cent of global dairy trade is from the exporting regions where they are not increasing milk supply, with the EU being the “most iffy” number on the chart.

Meanwhile the carbon footprint for milk is not created equal around the globe, Ledman said. “The US is planning to meet its carbon commitments based on research and technology, while the EU is aiming on reducing cow numbers. In the last decade, the EU expanded their market opportunities, while the US looked inward, and ran away from trade agreements. However, now there is a golden opportunity for the US, as the EU has done a lot of heavy lifting on expanding US opportunities.

There are also challenges in emerging markets, she said. “With seven million metric tonnes of demand, Africa is adding people. If the EU cuts milk production to Africa, Africa is forced to produce more milk, and this is not going to lower emissions. Greenhouse gases don’t know borders.”

Ledman noted in the last couple of decades, the world has been fixated on China and its infant formula market. She suggests this may be misdirected, as by 2030, China is going to have 103 million people in the over 50 category. This amounts to one-third of the US population, all of whom need nutrient dense, functional dairy products. “If you look at Mexico, it’s the second largest dairy importer in the world by per capita consumption, and it’s where the over 50 category is also growing. In India, another market leader, the under 20 crowd is declining and they’re getting older. The only place where half of the population growth is going to occur is Africa, where over 80 per cent of the population under 50 years of age. When looking at the dairy of the future, are we producing the products that consumers will want to consume?” she wondered.

Spanish case

José Armando Tellado, the Capsa Food CEO, offered a farmer’s perspective. “We are committed with natural products and the ability of milk as a natural product. Our commitment is the care and respect for the field. We understand that it’s not just what we do, it’s the way that we do them. We are carbon neutral in our factories, and the first dairy company in Spain to be zero waste. We operate a test farm in Asturias for carbon credit certification, measuring and monitoring carbon footprints and technologies.

“One of the main concerns is land loss and whether people be able to eat in 2030. The Spanish population has increased by 17 per cent since 2000, due to immigration to 47 million. In that time, there has been a drop in farms from 60,000 to 10,000.

“However, production has grown, farmers are more professional, but we still need to take into consideration the issue that 40 per cent of farms are in areas of fewer than 2,000 people. Meanwhile, the average age is increasing for farmers and more farms don’t have enough financial capacity to fix this situation. Around 60 per cent will retire before 2030.

We are just worried about guaranteeing we have food, so we need to invest in the value chain, to make sense for all of us, and not leave anybody behind,” he stated.

Multi-national

Peter Giørtz-Carlsen, EVP Europe and member of the executive board, Arla Foods, rounded off the first session with his discussion of his company, which processes 30 billion kg of milk per year. Arla asks its farmers about 250 questions about climate yearly, as “it’s clear we have a huge role in providing healthy and nutritional dairy to the growing population, and are obsessed by being part of the solution on the climate journey.”

The company sees growth of around two per cent per year with Asia, MEA and EU as the main growth drivers. In Europe, there is growing demand for dairy and a huge need for high quality protein with low emissions, despite negative stories. “Consumers across the world recognise the importance of dairy, but recent volatility has put pressure on the whole industry,” he stated.

In the EU, the slow delivery of its Farm to Fork scheme, along with the issue with the consumer labelling, is further undermining confidence in the industry, Giørtz-Carlsen opined. Although there are strong headwinds economically, he stated that dairy processors have to think about critical challenges to create a sustainable food system. “Dairy will play a significant role, and we need to produce 50 per cent more by 2050. This year has shown the global food system is vulnerable to external shocks,” he observed.

Arla is increasingly focusing on managing the climate improvements into commercial opportunities, as otherwise, there will not be money coming back in to spend on the farm. “We should take a more proactive step and try and show the way forward. Arla is earmarking up to €500 million per year to incentivise sustainability activities on farm and we are putting farmers at heart of sustainability journey,” Giørtz-Carlsen said.

“It’s not only up to the authorities – it’s up to us. We need to be ambitious on the climate, show the way, and create a better understanding.”

In session two, Piercristiano Brazzale, the IDF president, spoke about the challenges facing dairy, including the shortage of supplies, costs, and inflation, as well as the pressure on livestock production to be more sustainable, food policies on sugar, fat and salt; front of pack labelling protecting the use of dairy terms, superior nutritional value of dairy products, position paper, growing of products in the market of codex labels, confirmation of a starting of a process of protection of dairy terms. “There is a need for greater recognition of livestock in sustainable systems. Animal and plant foods should not be thought of as competitive systems, but as complementary products,” he observed. “Dairy farming is one of the only sectors that has the opportunity for carbon sequestration as well as carbon emissions.”

Global milk production

Catherine Roux, GM of Lactalis southern Europe, one of the largest dairy processors globally, offered the opinion: “We believe dairy has a bright future, because we need to feed a growing population. Our dairy products are really cheap in terms of nutrition, and offer nutrients such as 56 per cent of a person’s calcium daily intake in a serving. This is naturally bioavailable, and not added, and so it is easily absorbed by the body. One has to eat a lot of cauliflower or almonds to meet the same levels.”

When looking at plant-based products, Roux observed, “They are here, and they will grow, but we are first and foremost committed to dairy. We do not oppose plant based, but we should be clear that we are superior to plant based. We have to be clear to our consumer, have to promote dairy, and not be defensive, when facing plant-based factions.”

Vicente Gómez Cobo, president of Femeleche in Mexico, gave an overview of the Mexican industry. He noted it is a large, diverse country with very different climates, some population growth, and a very rural population that is moving to urban areas, as well as 800 different cheeses. It is also a population that migrates north. Bank revenues into Mexico in the form of remittances from the US amount to billions. “Mexicans milk cows in the US, and then, when they come back, they buy cows and milk them,” Cobo said.

There are thousands of milk producers, and everyone’s interested in Mexican dairy, he noted. “However, we don’t need more milk, we need more capital. Companies are now looking for domestic milk. Milk and dairy has grown 12 per cent in value, but consumption has remained stable,” he said.

Charles Brand, EVP processing solutions & equipment, Tetra Pak wrapped up by noting, “Food systems today are unbalanced and complex. At COP27, food was the centre of the event. The dairy industry was very well represented. There is now global recognition that food is part of the challenge, but also part of the solution. Lot still to do to transition to sustainable, resilient food systems, but Tetra Pak agreed to support Pathways to Net Zero for dairy processing technologies. Food systems account for one third of GHG emissions, while one-third of food is lost. By 2050, we need 60 per cent more food to feed 10 billion people, without using more land and while lowering emissions.

The dairy sector is at a crossroads, with 20 per cent of milk produced lost or wasted currently. “We see the challenges as opportunities for the dairy sector. It is a win-win for people, the planet and common business to help the dairy industry decarbonise. Innovative technologies can get there by optimising production, by using a circular approach to dairy production,” he stated.

Packaging plays a critical role in the food supply chain, Brand noted. “Around 74 per cent of milk sold in Europe is packaged in beverage cartons, and 50 per cent in Europe goes for recycling. We are aligned with EU’s objective, but believe it should recognise the role of packaging for perishable food and its contribution to reducing food waste.”

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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.”

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This new tower, equipped with the latest drying technologies, allows the production of 30,000 tonnes of whey powder intended for the food industry. It produces high fluidity sweet whey powder marketed under the Flowhey brand and manufactured through a technology designed by Lactalis Ingredients to optimise the drying of the whey.

According to Lactalis, the tower has benefited from the latest technical knowledge aimed to modernise and make more reliable the company’s drying process while minimising its impact on the environment.

The Verdun plant, which employs 140 people, now has an overall production capacity of 75,000 tonnes of whey products per year thus opening up new markets for Lactalis Ingredients. The very composition of the whey (80% lactose, 11% protein), coupled with an innovative technology, will allow Lactalis Ingredient to sell more whey powder in human nutrition (chocolate, dairy products, biscuits, processed cheeses, etc) while developing international positions.

Flowhey drying technology

This new technology aims to optimise the lactose crystallisation contained in the whey in order to avoid unstable forms that are more hygroscopic and risky to caking.

Flowhey High Fluidity powders is particularly advantageous in exports conditions known to be hot and humid – areas that often are critical for the storage of whey.

Its high fluidity characteristics also allow bags or big bags to be emptied two to three times faster than standard whey, while limiting the release of dust into the atmosphere in the workshops.

The Lactalis site at Verdun has long had a CSR programme in place, with a diverse approach based on pioneering technologies and human initiative. This approach includes:

• Reduction of carbon impact from transportation: the concentration of liquid whey transferred to the Verdun site has been increased in order to reduce the number of tankers on the roads by nearly 15% over the last four years.
• Reduction of water consumption at the Verdun site by 55% over the last 20 years. One of the key actions is the reuse of process water, amounting to 25% of total consumption at the site.
• Reduction of atmospheric emissions by 96.7% over the last 20 years. Increase of energy production yields on various production facilities.
• In collaboration with the Bordeaux company NewHeat, the largest solar thermal power plant for industrial use in Europe is going to be built next to the Verdun site in 2022. The hot water produced by this plant will reduce the site’s gas consumption by 10%. CO2 emissions will also be reduced by 2000T per year. Confirmation of this project has been possible thanks to the help of the Ecological Transition Agency (ADEME).
• In 2022, environmental efforts at the Lactalis site at Verdun will also take the form of enabling green mobility through the installation of charging stations for electric cars for staff and an electric bicycle charging station powered by photovoltaic panels.

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Led by Scotland’s Rural College (SRUC), it is expected the Digital Dairy Value-Chain could generate an additional £60m a year for a region which produces nearly two billion litres of milk a year.

Globally, the industry produces around 3% of greenhouse gases related to human activity. As well as helping to decarbonise the region’s dairy industry, the project will help to develop and retain a skilled and innovative workforce in the area to create new products and new ways of working. These will be special to the region but also globally relevant in best practices and changing the perception of dairy as a high-value product.

Working with partners operating in the region, including the University of Strathclyde, University of the West of Scotland, CENSIS, First Milk, Lactalis UK & Ireland, Kendal Nutricare, Cows & Co Group, National Milk Records and SmartSTEMS, the project will provide a platform for research and business innovation in advanced, sustainable, high-value production and processing.

The project team will work with the dairy industry to develop and implement technologies for sensing and data handling, as well as infrastructure to support innovation and growth for local businesses, nurturing young entrepreneurs and teaching and training of new skills and capabilities. It will deliver advanced manufacturing processes to create a fully integrated and traceable supply chain as well as help businesses to develop new products and explore new markets.

At one end of the chain, farmers are increasingly able to monitor their cows and feeds, their environment and the milking process, while there also possibilities for sensing and use of data in smart factories producing more and better dairy products.

After receiving £21.3m from the UKRI Strength in Places fund, the project will be based at SRUC’s Barony campus near Dumfries, as well as at sites in Cumbria and across South-West Scotland.

Professor Wayne Powell, principal and chief executive of SRUC, said: “This funding is wonderful news for the dairy industry in Cumbria and South-West Scotland, as well as for the renewal and decarbonisation of the industry as a whole. It will provide a world-class platform for business innovation in advanced, sustainable, high-value dairy production and processing. SRUC and our partners are excited to be moving to the next phase of this fantastic project.”   

South of Scotland Enterprise (SOSE) is a partner in the project. Chair of the region’s economic and community development agency, Professor Russel Griggs OBE added: “SOSE is determined to work with our partners to help the South of Scotland maximise the economic opportunities available as we transition to NetZero, and this digital dairy project is a fantastic example of this collaborative approach.

“Dumfries and Galloway is often referred to as the heartland for dairy farming in Scotland, accounting for almost half of the country’s dairy herd. The investment through this initiative and 600 new jobs it aims to create are potentially game-changing for the industry.

“SOSE is delighted to be involved and look forward to continuing to work closely with our partners on this innovative project, with the aim of helping dairy farming become a sustainable and thriving industry.”

Jo Lappin, chief executive of Cumbria Local Enterprise Partnership (CLEP), said: “The dairy industry is an important part of Cumbria’s economy and we are therefore delighted that SRUC has received £21 million to support the sector here and in South West Scotland.

“Digital Dairy Value-Chain will help to deliver more jobs in the sector, alongside stimulating research and innovation to support our farmers to develop their businesses. Importantly, it will also help to decarbonise the industry.”

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The proposed transaction expands Lactalis Canada’s yogurt portfolio of iconic brands that include Astro, siggi’s and Stonyfield with the addition of three highly recognisable and popular homegrown yogurt names – Iögo, Iögo Nanö and Olympic.

“As a broadly-based dairy products company in Canada, producing and supplying a wide variety of popular brands, this transaction will reinforce Lactalis Canada’s position in the dairy category and will help enable key customer partners in both the retail and foodservice channels meet the growing consumer demand for yogourt products,” says Mark Taylor, president & CEO, Lactalis Canada.

In addition to the brands, the transaction includes yogourt production facilities in Granby, QC and Delta, BC as well as the operations at a leased distribution centre in Longueuil, QC. Lactalis Canada will add approximately 450 employees from across the country who will join the company’s existing 3,500 employees and 30 operating sites including 17 manufacturing facilities in Ontario, Quebec, Alberta and Manitoba.

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The French dairy giant Lactalis has similarly made a move to purchase some of Kraft Heinz’s cheese businesses in the US and Canada, although I do note that Kraft Heinz is hanging onto the ever-popular Philadelphia cream cheese brand. As a market goes, the US is tops for cheese.

The North American market continues to enjoy its cheese, with the US being the largest cheese consuming country worldwide, accounting for 24 per cent of the world’s total volume, and also leading in value terms – $25.9 billion. It seems a sensible buy to get in on some of the 6.1 million tonnes eaten there yearly, according to a report from IndexBox.

It also makes the most cheese, with 6.3 million tons produced in 2019. These numbers dwarf the second largest cheese consuming country, Germany, which consumed three million tons in 2019.

This drive is not expected to continue in light of the coronavirus, and 2020 is expected to be a stagnating one for the international cheese markets. Not great.

Well, we do what we can. This weekend we enjoyed yet another shipment of cheese. Quicke’s has an autumn selection box, which I do recommend. We also got some very nice Sandford Orchards Devon Mist cider to accompany it. Sadly, I missed out on the AlpenCheddar fusion cheese, but I’ll have to be a bit quicker next time. The delivery of delicious cheese and other goods is one of the revelations of this year, due to the circumstances in which we all find ourselves. Enjoy.

• 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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The transaction includes Kraft Heinz’s natural, grated, cultured and speciality cheese businesses in the US, Grated cheese business in Canada, and the entire International Cheese business outside these two countries, including the following brands: Breakstone’s, Knudsen, Polly-O, Athenos, Hoffman’s, Cracker Barrel in the US only, and outside the US and Canada only, Cheez Whiz. In addition, Kraft Heinz will partner with Groupe Lactalis on a perpetual license for Kraft in natural, grated and international cheeses and Velveeta in Shredded and International cheeses.

Kraft Heinz will retain the Philadelphia Cream Cheese, Kraft Singles, Velveeta Processed Cheese and Cheez Whiz Processed Cheese businesses in the US and Canada, the Kraft, Velveeta and Cracker Barrel Mac & Cheese businesses worldwide, and the Kraft Sauces business worldwide.

Under the terms of the agreement, Kraft Heinz will sell production facilities located in Tulare, CA, Walton, NY, and Wausau, WI, and a distribution centre in Weyauwega, Wisconsim. These facilities and their employees will continue to operate in ordinary course. Approximately 750 employees will be transferred from Kraft Heinz to Groupe Lactalis.

“We believe these cheese and dairy businesses will thrive in the hands of a global dairy company like Groupe Lactalis,” says Kraft Heinz CEO, Miguel Patricio. “At the same time, the transaction will enable us to build sustainable competitive advantage in businesses where we have stronger brand equity, greater growth prospects and can use our manufacturing scale and consumer-based platforms approach. This is a great example of agile portfolio management at work.”

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The Strength in Places project will produce a detailed application aimed at establishing South-West Scotland and Cumbria as the leading region for advanced, sustainable and high-value dairy processing.

Richard Dewhurst, head of Dairy Research Centre in SRUC’s South and West Faculty, will lead a consortium of research partners, regional and multi-national dairy-processing companies and seven enabling technology companies, to develop the Digital Dairy Value-Chain for South-West Scotland and Cumbria project.

The government funding, from the UKRI’s flagship £236m Strength in Places Fund (SIPF), will help create a more efficient and resilient dairy industry.

By using digital twinning, combining digital communications and advanced manufacturing, it will enable the tracing of milk, cheese and other products and provide assurance to retailers, wholesalers and consumers.

Professor Wayne Powell, principal and chief executive of SRUC, said: “We are delighted to join forces with the University of Strathclyde, the University of the West of Scotland and other consortium partners, to bring about a step change in research and innovation in dairy production and processing.

“In the long term, this project will bring much-needed jobs and economic activity to this rural area.”

Strength in Places Fund panel chair, Dame Kate Barker, said: “We are pleased to recommend this bid for early-stage funding. It provides evidence of excellent research that meets business need and great potential for collaboration, by bringing together a consortium to contribute to increased growth and productivity in areas of local economic activity.” 

The consortium comprises three research excellent partners (SRUC; University of Strathclyde; University of the West of Scotland); Dumfries & Galloway Council; regional and multi-national dairy-processing companies (Arla, First Milk, Lactalis Mclelland, Dale Farm); Newton Rigg College and seven enabling technology companies (Afimilk, CENSIS, Lely, Novosound, Seric, BT, Boston Networks).

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