MAKING A DIFFERENCE WITH DAIRY

Transcription

1 MAKING A DIFFERENCE WITH DAIRY

2 Introduction I went to University to study Dairy Science, and quickly felt dairy take over and become the central theme in my life. What have I learnt over the years, as follows --:

3 It s not easy. It is probably one of the most difficult industries that exist, cows do not stop producing because it is Christmas, constantly in an over or under supply, is the most sensitive raw material to spoilage and damage, and almost anything you can think of can have an effect on your end product, both positive and negative. It s an unappreciated super food It is a very underrated high protein, high calcium, high energy, food, that never achieves its actual value in the market. It has been maligned for years as a cause of heart problems, until recently, when trans fats were discovered to be worse, and sugar, even worse.

4 It tastes really good. Gone are the days when we had one kind of milk, two kinds of cheese, and butter to choose from. Our ingenuity has created so many variants of dairy products, those of you who are old enough, think of the shop shelves of the seventies, versus now, the variation across the board of dairy products is fantastic, the flavour is great, the variety and brands a privilege to enjoy and pick and choose from. It contributes to our economy. We have a well-established industry, capable of being self-sufficient, it employs hundreds of thousands of people, more particularly in the rural and peri urban areas, and we have large, medium and small producers, processors, and distributors to be proud of.

5 It is up until now safe and an important part of nutrition in SA. Dairy products are eaten by all, by some as a protein source, by some as a treat, some for health benefits, some as an indulgence food, by some as just a part of daily life that they do not think about. Also, no matter how hard it has been tried, true dairy taste, flavour and value cannot be created from cheap non-dairy ingredients. To date SA dairy has not been responsible for illness, death and health issues in a significant fashion, and we hope it remains so.

6 MAKING THE DIFFERENCE. It is my intention to challenge your thinking with this address, and hopefully leave you with some food for thought My intention is to focus on African / South African issues, because that is where we are, operate, live, do business survive and grow. So, as an industry working with an easily contaminated base raw material and end product which is easily and significantly deteriorated by temperature and bad handling, how do we make a difference. I have prepared a simple mission, which I would regard as relevant to our times.

7 MISSION Our dairy industry has a responsibility to produce value for money, safe, innovative and tasty products, that are good for the consumer and contribute to their wellbeing, and in this way grow volume, become a food of choice, create employment and become an industry to be admired

8 Quite a mouthful, how do we do it? Make a difference by --: Consistent quality Variety of product Development of new product Extend product reach Extend consumer reach Improve nutritional value Technological improvement to increase value for money

9 CONSISTENT QUALITY There is nothing a consumer hates more than buying something that is good today, and then being disappointed on a repeat purchase. Even if the product is not branded, the customer may avoid the product type or grouping when again shopping, and perhaps rather purchase a protein source such as processed meat than once again buy cheese that disappointed them. So, consistent quality means that the product is microbiologically safe, within the specification that describe or legislate the product type and variant, regarding physical / chemical characteristics, that it looks and tastes acceptable and has a reasonable expected shelf life. The worst thing anyone can do, is send out product, under the guise of a bargain, that is branded or not, and does not comply with above.

10 This is may be done by less scrupulous processors or in times of product shortage. Consumers are not fools, and will vote with their budget Rand on this. It is in the hands of the manufacturer and the retailer, not to do or allow this. Unfortunately, there are no grey areas, only right and wrong. A question I have to ask is, where is our legislation taking us, what are we allowed to produce specification wise, and is it really policed. In Europe yoghurt is something that has a protein content of 4% plus, we are literally watering down our product to the levels of way below 3%, in compliance with minimum legislated levels, then, thickening it. No longer a reasonably high protein food?

11 I leave one thought with you on this matter, the poultry industry started brine injection into frozen chicken, to the point where so much was added that no-one could compete if they did not inject. The nett result was that the consumer started to get used to the shrinkage of his chicken piece, and found it less good value than before. Next step, imported product that was not injected being dumped on the market, and eagerly received by the consumer who realised that these products did not shrink when cooked. No sympathy for the industry from a consumer perspective. Let s make a difference by giving the consumer a safe, tasty and consistent product, with expected content, and hopefully see the volumes grow.

12 VARIETY OF PRODUCT Product variety can be achieved when we reach the level of South African variety that it is no longer required to import product. In order to achieve this, we need to examine sales and determine which imported products are selling, and why they cannot be made here. If they can be made here competitively, they should, and this will grow the proudly South African market share, increase production, throughput, employment, and the relative spinoffs. It will however be necessary to ensure that they are of acceptable and consistent quality.

13 I recently stood at a shop shelf, and agonised about the purchase of foil wrapped processed cheese portions. I purchased the SA version which was interestingly enough, more expensive. On opening the outer pack, I noticed some mould growth on the foil outer, being a production person, I understood how easily this could take place, and who is scared of a bit of mould. On removing the foil wrapping however, I found the contents to be so soft, despite being in the refrigerator, and the wrapping so difficult to remove, that using my large fingers with short nails that I was crushing the product, and as the foil came off, I was spreading the mould from the foil onto the product surface. I threw it away in disgust, and was sorry about the selection I made. If we want to make a difference, let s do it properly, and ensure that the little things that alienate a consumer are properly addressed.

14 DEVELOPMENT OF NEW PRODUCT We have some great minds among our R and D staff, and some highly imaginative and competent marketing people in our industry. When effectively combined with competent dairy technologists who have to execute the dreams, I believe we are able to achieve great heights and make a difference. New product development has been increasingly focussed on making the current product cheaper, and not on real innovation, perhaps, in order to make a difference, we need to look outside of our current perceptions, and look to really new and different product development, perhaps with an African / South African twist on them.

15 We tend to be Eurocentric in our development, and follow European trends while living in a third world country where hunger is a reality. How many of our citizens would really make use of a 330 ml high protein energy and mineral recovery drink for use after vigorous exercise, cost R 30.00, versus how many would prefer to feed their child a 50 g piece of cheese, 30% protein, 30 % energy, and with some extra calcium, cost R Would it not be nice, when watching televised South African rugby and soccer games to see the crowd nibbling on biltong and chakalaka flavoured cheese bites, and drinking vodka and marula flavoured milk, instead of beer and chips.

16 EXTEND PRODUCT REACH Much has been done in the past to preserve our products in order to get them to the consumer, wherever they may be in a good and safe and tasty condition. So, we developed UHT, ESL, dried milk and cheese powder. Very little progress has however been achieved recently, and few and far between that had wow factor, regarding the effective shelf life extension of dairy under challenging conditions. I do not have the answers, but, surely it is something we can work on, in order to make dairy more available in far out areas, and thereby, make a difference. Surely it is possible to produce pickled, flavoured, hard process cheese pieces in a plastic type packaging, in a box, the way Werda sell their salads. Off the shelf, no refrigeration needed.

17 EXTEND CONSUMER REACH We need to make dairy a real part of the diet of all our people. In this respect we need to address consumers in all income brackets, cultures, and eating habits by developing and refining product offerings to address all of the above. Let us get the lactose free products available at affordable prices to those who are intolerant, lets get our flavouring offerings more Afrocentric, lets get our portion sizes down to enable an affordable purchase for lower income groups who do not want to sacrifice quality, but have a limited spend available. The sky is our limit on what can be done. Let s make our dairy different, and make a difference.

18 IMPROVE NUTRITIONAL VALUE We can address the sports nutrition market, as well as the ageing and wellness markets with protein, vitamins, minerals and probiotics, fibre and such. This sector is covered, and I am sure will grow, all these products are however expensive, and marketed through channels that most consumers do not utilise or identify with. Has the time not come to sell a 330 ml bottle of milk / whey, lactose free so that the user will not be affected if intolerant, also sweeter as a result, and pack it with the required vitamins, generally deficient amino acid s and mineral requirement equal to 50 or 60% of the adult RDA. Everyones milk

19 Drinking this would ensure that you need only the most basic of other basic foods, ( Maize, bread, vegetables ) without any bells whistles etc, to ensure good health. My goodness, Coca Cola are selling water with the same aim and you pay R to R / 500 ml retail. Almost the price of a 2 L milk. Lets make a difference as an industry to the basic nutrition of our people.

20 TECHNOLOGICAL IMPROVEMENT TO INCREASE VALUE FOR MONEY Let s start to use the technology and its application, at our disposal, not only to cut labour cost, mechanise, etc and rather try and produce cheaper better products, and put that technology, and new technologies that still have to be developed to work to grow our business, making dairy more value for money for the consumer. This will make a difference, grow the market, and help promote our industry to the forefront of consumer s minds.

21 CONCLUSION I believe we are at a bit of a crossroads right now. We can continue to do what we do, because we are not doing too much wrong, continue to follow Europe in what we do, and how we do it, and muddle on, growing at the rate that we are. Or

22 We can start to take cognisance of where we are, what we have at our disposal, really look at our marketplace, our consumer profile, our country as a whole and where it stands, and start to think differently about what we can achieve, and how. I trust that I have to a degree challenged you, that was my intention, and you will view your role in perhaps a slightly different fashion. I hope you will enjoy this symposium, and what we have to offer. Please remember the mission:

23 Our industry has a responsibility to produce value for money, safe, innovative and tasty products, that are good for the consumer and contribute to their wellbeing, and in this way, grow volume, become a food of choice, create employment and become an industry to be admired

24 Thank you.