Shining a spotlight on our high value ingredients
Across our Co-operative, dairy know-how and innovation is part of our DNA. For nearly a century, we have been at the forefront of pioneering advancements in dairy nutrition.
Our ingredients are a cornerstone of our Co-op, driving significant value for our shareholders as we put milk solids into functional nutritional ingredient solutions, while at the same time driving efficiency in our operations.
In FY23 the Co-op’s ingredients business represented 80% of Fonterra’s milk solids sold, contributed $17.4 billion in revenue and $2.6 billion in gross profit. Return on capital was 16.4% (up from 9.0%).
Our strength in manufacturing, strengthening of customer partnerships and R&D capability will enable us to continue to grow this part of the business, which has a rich history of innovation.
In 1927 the first Dairy Research Institute was opened to support dairy companies throughout New Zealand. This was followed by the development of the single starter strain for making cheese in 1938 and the extension of shelf life of anhydrous milk fat in 1941, which allowed cream-based food to be shipped to troops during World War II.
The world’s first whey protein powder was developed and commercialised in the 1970s and ‘spreadable butter’ introduced to the world in 1991. More recently we have used advanced dairy technology to enable milk protein concentrate to be easily dissolvable in cold liquid (an important step for making cheese and medical beverages).
Driven by our commitment to deliver sustainable value from New Zealand's world-renowned milk and our unique expertise in dairy science, we focus on all ages and life stages to produce dairy nutrition solutions for key wellbeing areas such as active living, medical, healthy ageing, infant and maternal, and complementary nutrition.
NZMP, New Zealand Milk Products, is the ingredients and solutions brand of our Co-operative. It has one of the broadest ingredient ranges in the dairy industry, with offices in 13 global locations and ingredients sold in over 100 countries and used by some of the world’s most famous food and nutrition brands.
In 2022, we launched Nutiani, our wellbeing nutrition solutions brand, with a premium portfolio of ingredients including probiotics, hydrolysates, and proteins. Since then, Nutiani has supported hundreds of health and wellness businesses in creating science-backed nutritional products.
Let’s take a look at some of our high value ingredients that form the backbone of our exceptional products:
A rapid absorbing protein containing naturally high levels of amino acids.
Application:
We partner with Radix Nutrition to develop next-generation nutrition products using our milk protein concentrate and ultrafiltered grass-fed whey protein isolate. Our partnership also involves combined efforts in new product ideation and development. The ingredients we supply allow Radix to achieve the highest possible DIAAS score, creating the world's most bioavailable whey protein.
Key Features:
- High nutritional properties
- Helps support muscle and tissue health
- Ideal source of protein for athletes, the elderly and patients
A form of ‘pre-digested’ protein easily digested and rapidly absorbed, suitable for paediatric use.
Application:
We partner with a medical nutrition global leader to supply ingredients for their high-protein, high-calorie enteral nutrition products for patients requiring tube feeding. The use of our hydrolysate ingredient enables our customer to provide essential enteral nutrition, keeping vulnerable patients alive.
Key Features:
- Used for medical nutrition
- Protein fortified for food and beverages
- Suitable for infants and young children with feeding and digestion issues
A naturally occurring protein found in human and cow’s milk.
Application:
We partner with a large-scale cheese manufacturer to incorporate our rennet casein into their range of processed cheese products. Our collaboration saw us providing ingredient expertise, formulation guidance, and technical support to scale up to commercial production. This partnership enabled our customer to accelerate innovation by leveraging our high-quality ingredients and technical expertise.
Key Features:
- A natural source of amino acids and carbohydrates
- Provides a ‘real’ flavour
- Allows for optimised formulations for processed cheese
A creamy and highly stable whole milk powder for UHT, ideal for recombined UHT milk and milk drinks.
Application:
Our multiple partnerships with leading beverage manufacturers result in our whole milk powder UHT being used in many flavoured ready-to-drink beverages, offering a creamier, fuller flavour product that our customers and consumers value. Manufacturers consistently prefer our whole milk powder UHT over standard whole milk powders, recognising its superior quality and performance.
Key Features:
- Made from regular milk and used when fresh liquid is not available
- Full fat and rich creamy flavour
- Multiple uses including bakery goods, confectionery, ice cream, yoghurt and supplements
Live microorganisms (bacteria and yeasts) derived from New Zealand cheddar cheese cultures that support inner wellbeing.
Application:
We have a long-term strategic partnership with a leading Chinese enterprise in the dietary supplements industry based on developing a range of clinically backed supplements for adults. These supplements, which have optimal anti-inflammatory and anti-allergic effects, are exclusive to this customer. Our collaboration spans supplying existing ingredients, co-investing in research & development to create new, exclusive strains, and offering expertise in formulation, nutrition science and clinical support.
Key Features:
- Fights against infection and inflammation
- Digestive and skin health
- Provides immunity support for mothers, infants and young children
