Published on March 4, 2014
Product and process innovation in the Australian dairy industry How Australian R & D can help to target Asian dairy markets Dr Barbara Meurer Dairy Innovation Australia 27 February 2014
Why Australian dairy R& D needs to understand export markets …. From: Australian Dairy Industry In Focus 2013, published by Dairy Australia
Asia is the major export market for Australian dairy manufacturers Australian exports are concentrated in Asia: 73% of total export Export value of $ 2.76 billion in 2012/13 Japan accounts for 19% of export value Greater China accounts for the largest export volume (not value)
More than dairy commodities Australia offers Geographic proximity to Asia 3hrs flight Perth to Singapore 3 hr time difference to Shanghai 2 hr time difference to Tokyo Australian dairy companies have a proven track record in supplying Asian markets over decades – for quality and consistency Dairy Innovation Australia Limited (DIAL) is Australia’s national dairy manufacturing R&D centre DIAL and its predecessor organisations have supplied Australian dairy manufacturers with high quality R & D and innovation since 1996 Asian markets demand More westernised diets, including more dairy Increased consumption with rising incomes Example: Starting from a low base, yogurt export volumes jumped more than 50% to 92,000t for Q1 2013 Asian markets are diverse Japan: accounts for the largest export value → a trend to value added dairy products Greater China: is the fastest growing market accounting for the largest volume → emphasis on commodities South East Asia: Growing dairy markets in Indonesia, Philippines and Singapore. Thailand trending toward decline due to politcal instability
Case study: Infant Formula Why? The demand for foreign brands of infant formula in Asian export markets is forecast to increase. The Chinese infant formula market is projected to double in value to US$25 billion by 2017 Euromonitor predicts that by 2017, China will represent nearly 50% of global demand for infant formula. Infant formula is a highly regulated market • Requires understanding of Chinese regulatory environment • Requires understanding of Chinese customer specific product specifications • Requires understanding of Chinese standard testing methods and equivalent methods
Case study: Infant Formula Process optimisation A critical mass of expertise in drying and evaporation including the manufacturing optimisation of complex nutritional powders. Modelling & International Networks Sophisticated software models developed with international collaborators to predict the outcomes of process changes during evaporation and drying. Powder Library DIAL’s large reference collection of dairy powders can assist in relating processing conditions to product functionality. Product characterisation Powder flow properties, particle size and solubility. DIAL can help with stickiness of lactose rich powders Pilot Plant Pilot scale evaporator and drying equipment can be accessed at Monash University People and Capabilities at DIAL
Case Study: Shelf life and transport Issue: Long transport distances within Australia and to export destinations So far: Preference for long life commodity products for export: Powders and cheese New trends - new product formats Liquid milk and liquid nutritional drinks – UHT formats Fresh dairy and fresh liquid milk – longer shelf life required R&D platforms for shelf life extension UHT expertise and pilot plant Formulation and NPD Modified atmosphere storage Concentrates
Case Study: Cream Cheese Export: Ingredients for Bakery and Confectionary Trend away from commodity products toward customised ingredients for specific applications Ingredients Powders: Whey and Whole Milk Mixes Cream cheese: Trend away from Cheddar style commodity cheese to customised products for specific applications, including cream cheese. Non-Cheddar varieties now account for 55% of exported cheese Product applications in ice cream, bakery, confectionery, pizza toping, processed cheese …. Japan received 60% of Australia’s cheese exports Testing the performance of your ingredient Product Characterisation and Testing Food Applications capability at DIAL
Case Study: Cream Cheese People and Capabilities at DIAL Process engineering Practical experience in industrial cream cheese manufacture and optimisation of production processes. Cream cheese model systems and manufacture DIAL can produce small batches of cream cheese for formulation and ingredient testing Product characterisation Texture profile analysis, rheology and viscosity, microstructure Sensory analysis A sensory panel has been trained specifically for cream cheese. Ingredient performance in different food applications: baked, frozen and refrigerated cheese cake, dips and icing. Cream cheese cultures DIAL’s culture collection of over 3,000 dairy strains
Adding Value To enhance the commercial value proposition of dairy products by demonstrating consumer health and nutritional benefits Muscle Maintenance & Movement Protein / Nutrient Quality Dairy Protein & Regulatory Dossiers Dairy Foods (+Effects) Weight Management Collaborative Sports Performance & Recovery Confidential Health Claims & Improved Marketing Messaging
Collaborative Networks with known Australian health researchers Members Dairy Australia Fonterra Gardiner Foundation Lion Dairy and Drinks Murray Goulburn Cooperative Parmalat Australia Tatura Milk Industries Warrnambool Cheese & Butter
Dairy Innovation Australia is located in the heartland of Australian dairy production, the State of Victoria, in the Melbourne suburb of Werribee Brisbane Sydney Melbourne
What does DIAL do? • • • • • Research People & Infrastructure Starter Culture Business Unit Technology Transfer Fee for Service Commercial Confidential Competitive
What DIAL can do … Strengthening the manufacturing sector through strategic research Innovative adoption of technologies Growing capabilities and markets Nutrition and Health Access to diverse multi-ethnic populations Access to world class clinical collaborators Test bed for Asian pallets Access to diverse multi-ethnic populations Sensory analysis capabilities Process and Product Innovation Shelf-life technologies for value added products Product model systems and food application testing Knowledge of Asian regulatory environments Hosting delegations from Japan, China and South Korea Manage your collaborative research program across multiple organisations Transport and storage solutions for export Links to a large domestic collaborator network in universities – access to all key platforms in food science and technology
Thank you Contact Dr Barbara Meurer Dairy Innovation Australia www.dairyinnovation.com.au
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