The dairy business in Ireland is big. Think of all the farms, services, co-ops and workers. The dairy business globally is an even bigger business, with all of the global dairy businesses and related employment. Once a year, the dairy world comes together to discuss the future of the industry and what challenges need addressing at the International Dairy Federation gathering.

Lest we forget, all these dairy businesses are competing with each other on a global scale. If a buyer wants dairy protein, he has a list of phone numbers and a specification sheet. Distance from where he needs the product doesn’t really matter. So when dairy companies sit down to discuss the dairy world, they have no problem sharing ideas in the pre-competitive space (nutritional benefits, planet proofing, etc) but when it comes to discussing in the competitive space, it’s all locked down.

The big-ticket items in the pre-competitive space are the nutritional benefits and moving into sustainable diets.

“Essentially, this means eating food that is really good for you, but that is also really good for the land used to produce the calories. Remember, not all calories are produced equally, so health benefits plus planet proofing is a real strong ticket and we are lucky we have that in dairy,” said National Dairy Council chief executive Zoe Kavanagh.

This means that milk as a product can improve population health, but not at the expense of the environment. This is likely to be the mainstay of dairy defence for the next four years.

It’s a smart use of land. In Ireland we can grow grass right across the country. The mix of sunlight and rain makes this crop grow really well. That inedible protein is then converted into milk and it gets into schools and houses across the world, providing protein for growth and development.

Health upside

“When I sat down with my global comrades, the discussion was around the ‘dairy matrix’, so rather than just talk about the protein, we now have to talk about the sum of the parts or the overall health benefits – we know it will reduce cardiovascular disease, we know it will increase healthy outcomes, so it’s much more than just protein.”

World Class

At this year’s gathering, half of the participants were from countries in the global south. Their challenge is to get dairy protein at an affordable price.

“One speaker from India described how his mother had sold fish at the local market and put five kids through school and that dairy can be a pathway to a brighter future, depending on where you are,” Kavanagh explained.

There is also an increasing emphasis on self-sufficiency away from western multinationals, best described by another speaker representing India who asked the big dairy players around the table not to“come to our country - we want to develop our own supply chain.” There is a corporate social responsibility between the bigger, more established players, to provide balance to allow smaller producers to look after themselves, as many have previously been denied access to the inputs and resources these large multinationals have.

Pictured at Dairy Day, Punchestown at the launch of ‘Sustainable Dairy in Europe – safeguarding our resources’ are Mary McCarthy Europe’s milk Forum and Zoe Kavanagh, CEO National Dairy Council.

In China, this is less of an issue, because there is not sufficient land to fulfill the massive protein deficit. The main message from companies in the global south is that they have food that can nourish the world with safe and sustainable dairy.

Kavanagh went on to explain how other global companies are selling the positive dairy message;

“Take Danish and UK-based company Arla. At the IDF in Turkey, an Arla representative listed out the key priorities for Arla as a company.” The list is on the far right and essentially all dairy companies should look at these elements as key strategy moves to underpin the markets.

Food waste – where does dairy fit?

Kavanagh explained that food waste is a huge issue in other food groups.

“I think for some vegetables or plant proteins there is significant waste even before it gets to the consumer. Think about pea harvesting – I believe only 11% of the protein actually gets to the shop shelf as the pods are discarded, there is natural waste etc etc,” she said.

This part is a strong benefit for dairy, as very little is wasted before it gets to the consumer. In fact, when dairy gets to the consumer there is a risk with ‘out of date’, ‘use by best before dates’ etc.

The conversation on this aspect is only starting, but Kavanagh is adamant dairy needs to have a position.

“We need to know the numbers. We need to know how it compares, what level of crop is wasted when grazing. I think this is a really good part of the holistic story around this food group.

“This even builds into the packaging debate that is becoming more of an issue. In parts of the world milk is consumed in plastic pouches – they all end up somewhere and need to be managed.”

Addressing misconceptions about dairy and sugar

In discussions around body weight and obesity, milk and other dairy products can be targeted for their apparent high sugar content, leading many to believe that dairy should be limited to avoid weight gain through consumption of excess sugar. As part of the 2019 IDF World Dairy Summit, several high-level international speakers addressed the sugar question, discussing the latest science on dairy and sugar in our diets.

Milk, plain yoghurt, and other unsweetened dairy products contain the naturally occurring sugar lactose. Unlike added sugars, which contribute plenty of calories but no nutritional value, lactose in dairy is part of a nutrient-dense package, providing an abundant supply of high-quality protein, calcium, phosphorus, potassium, iodine, and vitamins B2 and B12.

Furthermore, studies have clearly indicated a differential role for foods that are inherently nutritious, such as milk and yoghurt. When children and adolescents consume dairy products such as flavoured milk and yogurts, the quality of their diet improved, and in the case of studies looking at the impact on weight, no adverse effects were found.

In depth

At the IDF conference, Kavanagh gave a presentation on the difference between regions, reviewing what has happened over the last five years and looking forward to what will happen in the next five. All countries completed a survey on the various trends and Zoe focused in on France, the US and

Zimbabwe for comparison purposes.

Looking at Zimbabwe, a small milk producer (1bn litres in comparison to the island of Ireland, which is heading for 10bn litres), there has been 10% growth over the last five years. If you look to France, a larger producer, there has been consumption growth in cheese, cream and butter, but liquid milk is in decline. If you take a view from the US, it also shows that liquid milk is the first to be hit and has been hit a lot over the last five years. They have big issues with animal welfare, fat and intolerance to allergies, but butter, cheese and yoghurt are holding well.

The world is obsessed with trends in consumption, but I think we need to look at it, as there are 42 eating occasions in a week and rather than spread fear, we could look at how the dairy world can use the change as an opportunity to reimagine how it can fit into those 42 occasions. Think about lattés, smoothies, protein shakes – people view products differently and consume differently in various trends, so the dairy industry has to move with the times and be smart about it.

“When you stand back and compare the dairy industry to other sectors, the dairy industry is poorly served by marketing because the margins are tight. Most dairy processors are working in a 3% margin game, while there can be competitors working in a 15% margin space. That gives them a lot more capacity for research, development and innovation,” Kavanagh said.

Inevitably, this is why even the National Dairy Council struggles, because dairy is not able to invest enough.

Zoe Kavanagh.

Branding

At Ploughing 2019, I was on the NDC stand. As I was going in the door, I was met with a wave of young girls and boys coming against me, as they poured out of the stand. I asked Zoe what was going on and she explained Greg O’Shea (the Limerick man who won Love Island) had just left. She explained, that we “need dairy to be associated with fashionable people that are relevant and attract a young audience. Greg ticks those boxes and allowed us engage with these young girls and boys.”

Another area the global dairy network is working on is a campaign to counter the negative publicity around dairy.

“We have joined up with our comrades in the English-speaking world on a project to create positive content, so that when young people search the internet they get more than just negativity. This has worked in a pilot project in Denmark, so we need to widen it out now and get some positive messaging mentions.”