Dr Barbara Meurer, DIAL's Milk Quality and Biotechnology Manager presented at the "Australia’s Vibrant Food Industry in the Asian Century" seminar in Wageningen, Netherlands on February 27th 2014. The Seminar was organised by the Australian Trade Commission. http://www.austrade.gov.au/local-sites/germany/events/food-seminar-2014

1. Product and process
innovation in the
Australian dairy industry
How Australian R & D can help to
target Asian dairy markets
Dr Barbara Meurer
Dairy Innovation Australia
27 February 2014

2. Why Australian dairy R& D needs to
understand export markets ….
From: Australian Dairy Industry In Focus 2013, published by Dairy Australia

3. Asia is the major export market for
Australian dairy manufacturers
Australian exports are concentrated in Asia:
 73% of total export
 Export value of $ 2.76 billion in 2012/13
 Japan accounts for 19% of export value
 Greater China accounts for the largest
export volume (not value)

4. More than dairy commodities
Australia offers
Geographic proximity to Asia
 3hrs flight Perth to Singapore
 3 hr time difference to Shanghai
 2 hr time difference to Tokyo
Australian dairy companies have a
proven track record in supplying
Asian markets over decades – for
quality and consistency
Dairy Innovation Australia Limited (DIAL)
is Australia’s national dairy
manufacturing R&D centre
DIAL and its predecessor organisations
have supplied Australian dairy
manufacturers with high quality R & D
and innovation since 1996
Asian markets demand
 More westernised diets, including more
dairy
 Increased consumption with rising incomes
 Example: Starting from a low base, yogurt
export volumes jumped more than 50% to
92,000t for Q1 2013
Asian markets are diverse
 Japan: accounts for the largest export value
→ a trend to value added dairy products
 Greater China: is the fastest growing
market accounting for the largest volume →
emphasis on commodities
 South East Asia: Growing dairy markets in
Indonesia, Philippines and Singapore.
Thailand trending toward decline due to
politcal instability

5. Case study: Infant Formula
Why?
 The demand for foreign brands of infant
formula in Asian export markets is forecast
to increase.
 The Chinese infant formula market is
projected to double in value to US$25
billion by 2017
 Euromonitor predicts that by 2017, China
will represent nearly 50% of global
demand for infant formula.
Infant formula is a highly regulated market
• Requires understanding of Chinese
regulatory environment
• Requires understanding of Chinese
customer specific product specifications
• Requires understanding of Chinese
standard testing methods and equivalent
methods

6. Case study: Infant Formula
Process optimisation
A critical mass of expertise in drying and
evaporation including the manufacturing
optimisation of complex nutritional powders.
Modelling & International Networks
Sophisticated software models developed with
international collaborators to predict the
outcomes of process changes during
evaporation and drying.
Powder Library
DIAL’s large reference collection of dairy
powders can assist in relating processing
conditions to product functionality.
Product characterisation
Powder flow properties, particle size and
solubility. DIAL can help with stickiness of
lactose rich powders
Pilot Plant
Pilot scale evaporator and drying equipment can
be accessed at Monash University
People and Capabilities at DIAL

7. Case Study: Shelf life and transport
Issue:
 Long transport distances within
Australia and to export destinations
 So far: Preference for long life
commodity products for export:
Powders and cheese
New trends - new product formats
 Liquid milk and liquid nutritional
drinks – UHT formats
 Fresh dairy and fresh liquid milk –
longer shelf life required
R&D platforms for shelf life extension
 UHT expertise and pilot plant
 Formulation and NPD
 Modified atmosphere storage
 Concentrates

8. Case Study: Cream Cheese
Export: Ingredients for Bakery
and Confectionary
Trend away from commodity products toward
customised ingredients for specific
applications
Ingredients
 Powders: Whey and Whole Milk
 Mixes
 Cream cheese: Trend away from Cheddar
style commodity cheese to customised
products for specific applications, including
cream cheese.
 Non-Cheddar varieties now account for
55% of exported cheese
Product applications in ice cream, bakery,
confectionery, pizza toping, processed
cheese ….
Japan received 60% of Australia’s cheese
exports
Testing the performance of your
ingredient
Product Characterisation and Testing
Food Applications capability at DIAL

9. Case Study: Cream Cheese
People and Capabilities at DIAL
Process engineering Practical experience in
industrial cream cheese manufacture and
optimisation of production processes.
Cream cheese model systems and
manufacture DIAL can produce small
batches of cream cheese for formulation
and ingredient testing
Product characterisation Texture profile
analysis, rheology and viscosity,
microstructure
Sensory analysis A sensory panel has been
trained specifically for cream cheese.
Ingredient performance in different food
applications: baked, frozen and refrigerated
cheese cake, dips and icing.
Cream cheese cultures DIAL’s culture
collection of over 3,000 dairy strains

10. Adding Value
To enhance the commercial value proposition of dairy products by
demonstrating consumer health and nutritional benefits
Muscle
Maintenance
& Movement
Protein /
Nutrient
Quality
Dairy Protein &
Regulatory Dossiers
Dairy Foods
(+Effects)
Weight
Management
Collaborative
Sports
Performance
& Recovery
Confidential
Health Claims
& Improved
Marketing
Messaging

11. Collaborative Networks with known
Australian health researchers
Members
Dairy Australia
Fonterra
Gardiner Foundation
Lion Dairy and Drinks
Murray Goulburn Cooperative
Parmalat Australia
Tatura Milk Industries
Warrnambool Cheese & Butter

12. Dairy Innovation
Australia
is located in the
heartland of Australian
dairy production, the
State of Victoria, in the
Melbourne suburb of
Werribee
Brisbane
Sydney
Melbourne

13. What does DIAL do?
•
•
•
•
•
Research
People & Infrastructure
Starter Culture Business Unit
Technology Transfer
Fee for Service
Commercial
Confidential
Competitive

14. What DIAL can do …
 Strengthening the manufacturing sector through strategic research
 Innovative adoption of technologies
 Growing capabilities and markets
Nutrition and Health
 Access to diverse multi-ethnic populations
 Access to world class clinical collaborators
Test bed for Asian pallets
 Access to diverse multi-ethnic populations
 Sensory analysis capabilities
Process and Product Innovation
 Shelf-life technologies for value added products
 Product model systems and food application testing
 Knowledge of Asian regulatory environments
 Hosting delegations from Japan, China and South Korea
 Manage your collaborative research program across multiple organisations
 Transport and storage solutions for export
 Links to a large domestic collaborator network in universities – access to all key platforms in food
science and technology

15. Thank you
Contact
Dr Barbara Meurer
Dairy Innovation Australia
www.dairyinnovation.com.au