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Seize the Moment for Growth

Nearly four years ago, I proposed an idea. As the chief executive of Fonterra, I addressed the World Dairy Summit in Melbourne, Australia, to suggest it was time to work together to capitalise on opportunities for growth in the global dairy industry.

The result of that presentation – and in collaboration with other major dairy cooperatives, companies, and associations – was the formation of Global Dairy Platform. Together, we have accomplished a lot since GDP became a reality. More than 50 members strong, we represent commercial and non-profit sectors of our industry.

Now in 2008, we are ready to move to the next stage. While we all have focused on issues through our communications in the past, now it is possible to present them in a new and more coordinated way to “pack a bigger punch” for dairy. We still have the opportunities I discussed in my Melbourne speech and now we have the means to act on them. I urge all members of GDP to take immediate action and to assist Kevin Bellamy and his team in increasing demand for dairy across markets.

In more affluent markets, consumers are increasingly seeking foods that deliver health benefits. There is also a growing demand for convenience foods. In less affluent markets, growth is fueled by the demand for low-cost nutrition. Dairy meets all of these requirements. Now the question is, how can we work together to make the most of these opportunities? The subject areas that the team has decided to focus on, such as hypertension and obesity, are key issues of concern to governments, regulators and consumers across the world. It is essential that we position dairy as a positive solution – not a problem. This work cannot be done solely within companies or by any one agency. Instead, we need a truly international industry effort.

It is not enough for us to be convinced about dairy’s health-enhancing qualities: consumers must share this conviction. We must collaborate to build genuine, scientifically based confidence in dairy and aggressively stake dairy’s claim for nutritional excellence. We need to shape the public perception of dairy, rather than our competitors, who erode our market with dairy alternatives like soy.

To grow demand in dairy, we need to be working together as an industry to secure and defend dairy’s position as a safe, superior and cost-effective source of nutrition. While we compete in terms of developing innovative new dairy solutions among consumers and our business-to-business customers, there are opportunities to work together. Sustainability is one such area, with the growing focus on reducing greenhouse gases and pressures to reduce fertilizer use and pollution. Some initiatives are underway, but much more needs to be done.

Finally, it is critical that we act quickly to maximise these advantages. Now time is of the essence. I have pledged Fonterra’s commitment to grow demand and consumer confidence in dairy, and I am happy to see the commitment others have made to GDP. Now we must seriously consider – together – how to move beyond the current level of growth to a major expansion of demand.

- Andrew Ferrier is the CEO of Fonterra and Chairman of the Board of Global Dairy Platform.