The dairy industry is set to experience drastic changes over coming years but also opportunities, says Dairy Holdings CEO Colin Glass.
“Change will come in many forms of new technology. But new technology will also enable us to be smarter in how we operate. If we can be adaptable to that change and stay ahead I think it’s not something to be afraid of. We have to embrace change and the challenge.
Over the years the dairy industry has shown it’s been able to adapt.” He says that looking forward, adding value is the key.
While the development of lab grown and alternative milks could present a threat and direct competition he thinks the dairy industry may also be able to partner with companies and add value.
He points to examples such as UHT cream and mozzarella cheese.
“Our processing co-operatives are at the forefront of new technologies. For example as milk growth has slowed Fonterra is now able to invest more aggressively in value-add.”
He stresses that this has to go hand in hand with dairy businesses focusing on being profitable in order to be able to keep investing in value add products.
He also thinks that New Zealand’s largely pasture fed system, such as that Dairy Holdings has been focusing on, is the real strength and difference we have compared to the rest of the world.
“The international market will pay a premium for this but we have to clearly be better at what we do and how we market.”
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