DIRA Review: Open Country Dairy Warns Against Regulatory "Complacency"
The country's second largest milk processor is warning against 'complacency' during a review of competition regulations in the dairy sector.
That’s the view of MPI’s acting deputy-general of policy and trade, Jarred Mair, on the findings of a report The Evolution of Plant Protein – Assessing Consumer Response by MPI and Plant and Food Research on alternative proteins.
He says food substitutes have been around for ages and while NZ needs to develop its existing primary sectors, it also must develop new products as part of our export mix to achieve high value at a lower environmental footprint.
The report looks at consumer responses to protein and highlights their potential impacts on NZ agriculture.
The aim was to look long term to see what consumers might demand in our products and identify opportunities available to the sector, especially in the next five years.
The report says consumer preferences and awareness of the consequences of food production is creating a need for new products. It notes the ‘Impossible Burger’ – a plant-based burger patty that replicates the taste, texture and smell of beef.
“Companies in NZ, such as Sunfed Meats, are already making these products. They have a pea protein from which products such as ‘chicken-free chicken’ are produced,” Mair told Rural News.
“We have the technology and it’s apparently quite easily done. The issue for us is how do we create the consumer demand or create the point of differentiation, where we can sustain the value proposition over the longer term.”
Mair believes the move to food substitutes should give NZ food producers opportunity to get into the high end of the food market. NZ should cater for consumers’ cultures and beliefs, and produce superior and novel products for them.
He is fascinated by transformational changes taking place in the agricultural sector, notably growing dairy exports despite cow numbers falling, and massive growth in horticulture, especially kiwifruit, wine and pipfruit.
Mair says NZ has a good track-record in responding to market signals because, like some other countries, it is not encumbered by subsidies and restrictions.
“We now have another stimulant that has come into the equation and that will increase over the next decade or so. And how do we respond to that?”
Mair forsees more focus on defining products and more targeting of consumers willing to pay for superior products.
He says NZ is good at innovation -- small and large companies – as shown in greater export returns during the last year.
He believes NZ will respond to the plant proteins issue by calibrating its system to meet consumer needs.
“We can’t hide from the question of plant-based proteins. We will have to respond in some way and our point [in the report] is to raise awareness of what is going on.
“[We need to start] a debate about what we do now. The best thing we can do for NZ farmers is harness the innovation we have in this country and give them options about what they can do for the future.”
