New Zealand’s UK Free Trade Agreement (FTA) went live last May and is widely seen as one of the country’s most comprehensive Free Trade Agreements.
It enables high quality market access for the first time in over 50 years, when the UK was one of New Zealand’s largest export markets.
Mike Bones, Fonterra’s Managing Director Europe, is leading the team that’s looking at maximising the opportunities for the Co-operative’s dairy ingredients. He says they’re focused on efficiency and simplicity, including choosing the right partners and sales channels.
“The UK is the world’s second largest dairy net importer, with both strong local demand as well as pull from customers that export,” says Bones.
“So far, we’ve contracted 10,000 tonnes of product under the Free Trade Agreement, with most of this being cheddar from our Hautapu and Stirling sites. Butter, organic skim milk powder and proteins make up the remainder of the business and reflect the diverse opportunities available to Fonterra as a result of regaining access to the UK.”
A number of wins at the recent International Cheese & Dairy Awards in Cheshire, England, are proof of how Fonterra’s quality and innovation are world leading and highly regarded by the local industry.
The UK is a market that continues to surprise us with the breadth of opportunities, and we’ve done well to find two incredible partners to take our New Zealand dairy into the market.
Building strong partnerships
“The UK is a market that continues to surprise us with the breadth of opportunities, and we’ve done well to find two incredible partners to take our New Zealand dairy into the market,” adds Bones.
“So, phase two for us is about extending some of the fantastic global relationships that we have in the UK and building genuine and transparent partnerships that we know we will provide benefits to our customers and consumers in the UK while also returning value back to our farmer owners.”
Fonterra in Europe
The Co-op’s European business is a true regional hub. It provides sales and customer support to some of the world’s largest dairy, nutrition and food companies, including Fonterra’s global strategic customer, Nestlé. It also exports products to and from New Zealand, and around the world.
Europe is currently the largest market for functional Whey Protein Concentrate sales, with the high value ingredient used in cultured foods applications, such as high protein yoghurts and meal replacement beverages. Whey Protein Concentrate is sourced from New Zealand, and also the Co-op’s Heerenveen factory in the Netherlands, 90 minutes’ drive north of Amsterdam.
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