New Zealand-based dairy company Southern Pastures has agreed a deal with dairy co-operative Westland Milk Products to form a joint venture in the country.
Starting from the 2018/19 season, the venture will see Southern Pastures transfer all of the milk produced at its nine Canterbury dairies – amounting to four million kilograms of milk solids annually – to Westland.
The companies will each take a 50% stake in the venture, and its focus will be the production of free-range, grass-fed milk in a manner which protects animal welfare and promotes sustainable production practices.
Southern Pastures executive chairman Prem Maan said: “Here is an opportunity for us to put into practice what we’ve been promoting – premium products made sustainably.
“We believe discerning consumers will pay a premium for high-quality, healthy, traceable products.
“Nothing would delight us more than to prove the concept and then see the industry follow us, so that all of New Zealand gets to benefit from selling premium rather than commodity products.”
Maan added: “We want to grow our exposure to premium markets – markets where consumers are driven by a concern for ‘values’ and not just ‘value’ for money.
“We foresee massive disruption in the lower value commodity markets from the likes of synthetic proteins and factory farming.
“From day one, Southern Pastures has had a firm conviction about the potential of premium dairy products from New Zealand’s free-range, grass-fed dairy farming systems.
“While our commitment to protect, nurture and improve our environment is at the core of our practice, we don’t see any conflict between promoting sustainability and maximising economic returns. In fact, we’re convinced that sustainability is actually the key to creating value and long-term economic performance.”
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