The team had recently discovered a new natural source of nutritional oil that was "surprisingly similar" to the fat in breast milk, Thum said.
Scientists will combine this new nutritional oil with dairy phospholipids (a special kind
of fat) in response to recent evidence that this component of milk enhanced babies'
brain development, Thum said.
"Fortunately, phospholipids are abundant in buttermilk, which is a by-product of butter production."
Scientists will then test the next-generation formula ingredient in the laboratory, using
equipment that simulated the conditions inside a baby's digestive system, Thum said.
"This will tell us how well the new combination is digested, compared to conventional infant formula.
"We aim to show improved fat and calcium absorption, in addition to the positive effect of the phospholipids for brain development."
With the strong growth of global markets for infant formula and baby foods expected to continue, new products that provide a health advantage are in high demand, AgResearch said.
"This new funding will allow us to explore a new high-value opportunity for New Zealand's primary sector and contribute to New Zealand's global reputation as a source of naturally healthy foods," Loveday said.