How Fonterra products stand out in Japan

Japan's dairy market is very different to New Zealand's. File photo / Christine Cornege

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Japan is a growing market for dairy ingredients and therefore a critical one for Fonterra, Tatsuo Kunimoto, president of Fonterra North Asia says.

Japan has long been a highly valued export market for New Zealand dairy and a strong protein ingredients market for the co-op, Kunimoto told The Country Sport Breakfast’s Brian Kelly.

Kunimoto said one in three people in Japan will be over 65 by 2030, which meant a growing demand for products that supported well-being, mobility, and combat cognitive decline.

“Products like ready-to-mix protein powder, or yoghurt with added milk protein probiotics, or vitamins and minerals are very popular in Japan.”

Therefore Fonterra’s dairy ingredients fit well in this market, he said.

Japan is a very different market to New Zealand, so Fonterra’s products needed to stand out, Kunimoto said.

He said that, while Japanese consumers were willing to pay a premium for products with added health and nutrition benefits, taste was still “very important”.

Another way Fonterra stood out in the crowd was grass-fed, sustainable dairy, which the Japanese consumer was becoming more aware of, Kunimoto said.

Fonterra actively worked with customers to meet their exact requirements, which was crucial, and Kunimoto said this, along with the co-op’s capability and resources for dairy science and innovation, helped meet Japanese customers’ demand for specialised ingredients.

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One of these customers is Meiji, a leading dairy and confectionery company across Japan and Asia, which Fonterra is partnering with.

Kunimoto said Meiji’s MeiBalance Beverage was a high protein, nutritionally balanced drink that used Fonterra’s dairy proteins from the Clandeboye and Whareroa sites.