Japan is a sophisticated market for Fonterra

Japan is a large and growing opportunity for Fonterra. Photo / Christine Cornege

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It’s time now to talk to the team at Fonterra, and today The Country Sport Breakfast’s Brian Kelly is joined by Simon Tucker, Director Global Sustainability, Stakeholder Affairs and Trade.

“So, Simon, you were in Tokyo, Japan last month as part of a New Zealand business delegation, accompanying our Prime Minister, how was it?” Kelly asked.

“It is always good to visit one of our bigger markets and support the efforts of our New Zealand team to be on the front foot internationally,” Kelly said.

“Even if getting there proved a little bit more challenging getting there than expected.

“Japan is a sophisticated market, the quality, technology that they use, and their refinement of food comes to mind when considering Japan.

“They are very well aligned to what is key to our business in Japan, we are using our dairy science expertise to meet a growing demand for foods that support healthy living.”

Tucker said Japan was one of Fonterra’s top export destinations for its high-quality, innovative dairy ingredients.

Many of Fonterra’s proteins had been specifically developed for the Japanese market or are individual customer applications, he said.

“Demand for high-value protein ingredients, such as casein, caseinate, and whey proteins has been a driving force behind Fonterra’s strong earnings in Japan over the years.”

Tucker said one example was any visitor to Japan who stepped into a 7-Eleven store had a good chance of finding protein-fortified drinks and yoghurts containing Fonterra farmers’ milk.

Kelly asked, “Any trends in particular that Fonterra is cashing in on?”

“Japan has an ageing population with one in three people in Japan estimated to be over 65 years old by 2030,” Tucker said.

“Research shows Japanese consumers are willing to pay a premium of up to 50% for products that have added health and nutrition benefits.

“So, demand is projected to grow for products that support well-being, mobility and combat cognitive decline.

“Fonterra is well-placed to meet this growing demand.

“Fonterra’s proteins are designed to help people maintain muscle mass for better quality of life, our dairy lipids help to improve mood and our probiotics support immunity and digestion.

“It is interesting, I did a couple of supermarket visits and there was just aisle after aisle with products that are aimed at healthy living and healthy ageing, and that is a great trend for Fonterra to be hooking into,” Tucker said.

As the world’s fourth-largest economy and New Zealand’s fifth-largest export market, Japan offers a lot of opportunities in science and innovation, food, and agriculture.

“New Zealand’s grass-fed dairy plays particularly well into products designed to promote healthy aging, which with Japan’s shifting demographics, is a large and growing opportunity for Fonterra,” Tucker said.

“Fonterra looks forward to deepening its partnership with customers to make innovative, high-quality ingredients to meet Japan’s growing demand for dairy nutrition.”