• Fonterra Co-operative Group CEO Miles Hurrell says higher margins and sales volumes in the co-op's Foodservice and Consumer channels, which helped offset lower returns in its Ingredients business, were behind its strong performance in FY24. 
    Fonterra Co-operative Group CEO Miles Hurrell says higher margins and sales volumes in the co-op's Foodservice and Consumer channels, which helped offset lower returns in its Ingredients business, were behind its strong performance in FY24. 
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Fonterra and Royal DSM are establishing a new start-up company to accelerate the development and commercialisation of fermentation-derived proteins with dairy-like properties.

The start-up is the next step in Fonterra and DSM’s long-standing relationship, having been working together since 2019, building a comprehensive understanding of how to use precision fermentation science and technology to produce proteins similar to those found in dairy.

In February, they announced a collaboration to reduce on-farm greenhouse gas (GHG) emissions, by exploring applications for DSM’s methane-inhibiting Bovaer technology in the New Zealand pasture-based farming system.

To date, this work has created valuable intellectual property for which Fonterra and DSM have filed patents. The new start-up company will enable the acceleration of commercial product solutions utilising this intellectual property, while continuing to focus on further precision fermentation research and development.

Fonterra’s chief innovation and brand officer, Komal Mistry-Mehta, said fermentation-produced proteins had a wide array of potential applications for customers and consumers.

“Dairy nutrition will always be our core strength, now and into the future, and there will continue to be strong demand for our sustainable, pasture-based dairy. At the same time, we are conscious that preferences of some consumers are evolving, and we believe proteins produced with emerging technologies can work alongside our dairy products.

“With continued population growth, there will be a role for both dairy and other sources of nutrition in feeding the world’s population – they offer choice and they are complementary,” said Mistry-Mehta.

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