Fonterra has established a health and nutrition specialty ingredients unit in Auckland.
The company aims to become a leader in the bioactives market, expected to be worth US$60 billion in the US alone in the next four years.
Key areas included ingredients products aimed at showing benefits for the immune system, modified
milks, bone health, dermatology, gastrointestinal, therapeutics, sports and animal health.
Chief executive Craig Norgate said milk was a total health food product, and offered "virtually endless" opportunities.
"Apart from the obvious benefits like providing daily calcium requirements, milk also contains bioactive components that can improve overall health, fight specific diseases and contribute to resolving health issues like arthritis."
A number of projects were already under way, including the development of gastrointestinal anti-infective products to aid the prevention of stomach complaints.
