BEYOND VALUE ADD
Can you extrapolate those cow milk comments to goat and sheep milk? And add anything more that is relevant to that question?
Thanks for your comment and great question.
The warning that milk has peaked is certainly cow milk focused, however the message that growth can only come from value is even more relevant to NZ goat and sheep milk as they are premium milks that primarily end up in finished consumer products.
Fonterra at least has economy of scale to supply global ingredients markets. NZ goat and sheep milk powder is nowhere near scale to compete on price with much cheaper European powder so is even more reliant on consumer products than cow milk.
The solution comes down to the problem we alluded to at the end of the presentation that we will go into detail on in part 2. Suffice to say that without a sustainable way to drive consumption of the industry’s high value consumer milk products into our major dairy markets, then real material growth is a pipe dream.
Hope that helps, look forward to more of your feedback.
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