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Future Solutions for New Zealand's Dairy Industry Right Under Industry & Government Noses

New Zealand’s dairy industry, a key economic driver valued at over NZD $22 billion annually, is on the cusp of monumental transformation. The South Pacific nation produces around 3% of global milk output, equating to two and a half daily serves for 90 million people. With 95% of this production exported to more than 130 countries and 70% of farms family-operated, there exists a unique chance to leverage this heritage.


Precision fermentation, spearheaded by innovators like Auckland, based Daisy Lab, offers a sustainable path forward by utilising existing infrastructure to produce animal-free proteins. Daisy Lab, Co-Founder and CSO, Dr. Nicole Freed said at the recent Alt.Proteins conference in Melbourne, “We’ve replaced the cow and the milk truck with the yeast strain and the fermenter,” pointing to vast cost savings and up to 97% fewer emissions.

 Fresh milk from cows will be confined to the history books

Source: © Neirfy | Dreamstime.com - Fresh milk from cows will be confined to the history books


Capturing a first-mover advantage in this field is crucial to maintaining market dominance, particularly in pivotal markets like China, New Zealand’s largest dairy importer. By moving to a phased introduction of precision fermentation, farmer-owned co-ops like Fonterra, Tatua and companies like Synlait and Westland Dairy Products can continue supporting their shareholders at the same time diversifying to cropping plant-based raw materials for non-dairy milk production.


This strategy not only protects export strength but positions New Zealand as a leader, pre-empting other nations from developing their own precision fermentation capabilities.


The ecological benefits further bolster New Zealand’s sustainability commitments, supporting biodiversity and reducing pressure on land and water use. With innovation built on the foundations of more than 170-years of tradition and technical expertise, this shift would guarantee economic viability.

Dairy milk infrastructure

Source: © Oksana Ermak | Dreamstime.com Dairy milk infrastructure


Precision fermentation represents a reinvention of dairy production while preserving its processing roots. With tens of millions of dollars in existing infrastructure ready for adaptation, this technology enables a seamless transition into sustainable dairy alternatives. It ensures the continuity of farmer incomes and modernising the industry without uprooting its economic foundations.


By repurposing current facilities, New Zealand can future-proof its dairy sector, merging innovation with tradition to sustain its global leadership and secure a stable, eco-friendly income stream for its farmers and the nation at large.


For more information about Daisy Lab CLICK HERE


For more information about the Dairy Companies Association of NZ CLICK HERE


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