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 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%).
Whey protein isolate
A rapid absorbing protein with naturally high levels of amino acids.
Key features:
- High nutritional properties
- Helps support muscle and tissue health
- Ideal source of protein for athletes, the elderly and patients
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.
Hydrolysate
A form of ‘pre-digested’ protein easily digested and rapidly absorbed.
Suitable for paediatric use.
Key features:
- Used for medical nutrition
- Suitable for protein fortification of food and beverages
- Suitable for infants and young children with feeding and digestion issues
Application:
We partner with a medical nutrition global leader to supply ingredients for its 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.
Casein
A naturally occurring protein found in human and cow’s milk.
Key features:
- A natural source of amino acids
- Provides consistent structure and functionality for processed cheese
- Allows for both flexibility and optimisation in processed cheese formulations
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.
Whole milk powder UHT
A creamy and highly stable whole milk powder for UHT, ideal for recombined milk and milk drinks.
Key features:
- Used when fresh liquid is not available
- Full fat and rich creamy flavour
- Multiple uses including bakery goods, confectionery, ice cream, yoghurt and supplements
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.
Probiotics
Live microorganisms derived from New Zealand dairy cultures, that support inner wellbeing.
Key features:
- Fights against infection and inflammation
- Digestive and skin health
- Provides immunity support for mothers, infants and young children
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 and development to create new, exclusive strains, and offering expertise in formulation, nutrition science and clinical support.