Fonterra recently joined a business delegation from New Zealand to visit Japan, one of its primary export destinations for high-quality dairy ingredients.
Simon Tucker, Fonterra's Director of Global Sustainability, Stakeholder Affairs and Trade, said that when thinking about Japan, qualities such as quality, food, and technology came to mind, which aligned well with what was essential to Fonterra's business in Japan.
The Co-op has used its dairy science expertise to help meet the increasing demand for foods that promote healthy living in Japan. Its grass-fed dairy products are well-suited for promoting healthy aging, which has been a significant growing opportunity for the company due to Japan’s changing demographics.
Japanese customers have favoured these protein ingredients, and many have been specifically developed for the Japanese market and individual customer applications. Fonterra has also collaborated with customers, technical experts, and its Research and Development Centre team to meet precise customer requirements.
Many 7-Eleven stores in Japan sell protein-fortified drinks and yogurts containing Fonterra farmers’ milk, and research has indicated that Japanese consumers are willing to pay a premium of up to 50 percent for products that offer added health and nutrition benefits.
With an aging population, there has continued to be a growing demand for products that support well-being and mobility and combat cognitive decline. Fonterra is well-positioned to meet this increasing demand.
Japan is also one of Fonterra’s significant cheese markets. Japan has presented numerous opportunities as the world’s fourth-largest economy and New Zealand's fifth-largest export market.
