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Fonterra takes stake in US alternative ingredients business

Fonterra MilkDairy giant Fonterra has taken a minority stake in US food ingredients business, Motif Ingredients, which develops bio-engineered animal and food ingredients.

Judith Swales, head of Fonterra’s Global Consumer and Foodservice business, said the move shows the company’s commitment to farmers to stay innovative to meet the changing needs of consumers.

“Farmers expect their co-op to get the most value from every drop of their milk and also keep an eye on tomorrow to future proof their Co-op for generations to come. Dairy nutrition will always be at our core, but we also want to explore how we can capture more value from new types of nutrition,” said Swales.

Swales highlighted the importance of sustainable food for the future.

“The complementary nutrition category – where plant, insect, algae and fermentation-produced nutrition co-exist alongside animal proteins, including cows’ milk – is fast evolving. It’s not a case of either/or, but both. If we fast forward 30 years, there’ll be two billion more mouths to feed and there simply won’t be enough food to go around just using today’s methods. A combination of traditional and complementary nutrition sources will be required to meet the world’s increasing need for food, especially protein.

“Consumers around the world will continue to want natural, grass fed dairy as a premium source of nutrition. At the same time, we recognise that no two consumers are the same. As diets and preferences continue to evolve, we want to be there, providing people with choices.”

Motif Ingredients uses a process similar to how insulin, vitamins and beer are made by recreating and selling animal proteins and food ingredients, including those similar to dairy ingredients.

“Through biotechnology and fermentation, Motif will propel the next food revolution with affordable, sustainable and accessible ingredients that meet the standards of chefs, food developers, and visionary brands,” said Jonathan McIntyre, Motif Ingredients CEO.

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