Growing New Zealand’s Global advantage in Food, Fibre and Agribusiness

Guiding principles

Coherence – building critical mass around coherent research programmes

Leadership – collaborative groupings providing a bigger voice

Cross fertilization – multi-disciplinary research

Knowledge diffusion – from fundamental to applied/ line of site is key

Translation – relationships with end-users on multiple levels.

Overview

> New Zealand’s agrifood innovation challenge

> Touch on functional foods

> National vision, mission and strategy

> Food & health platforms

> Riddet innovation

> Other initiatives

Why innovate?

“Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy”1

1The Theory of Economic Development, Harvard University Press

Agri-foods place in New Zealand’s economy (2011)

On farm etc directly accounts for 5% of GDP. Processing accounts for 4% of GDP.Downstream activities also make important

contributions to GDP.10.4% of total New Zealand employment.Over half of manufacturing.

Slide courtesy of A Call To Arms “A contribution to a New Zealand agrifood strategy.”

Agri-foods Contribution to Exports

Agri-foods have been New Zealand’s largest single export sector for the last 100 years.

The sector now accounts for:

Annual exports of NZ$24 billion.

About two-thirds of New Zealand’s merchandise export earnings.

About 2.5% of global trade in foods and beverages.

Slide courtesy of A Call To Arms, a contribution to a New Zealand agrifood strategy

NZ Government’s Economic Growth Agenda – Agri-foods

Export more value-added

food & beverages

2009$20

billion

2025$58

billion

Some of the opportunities

Emerging economies – particularly China, Indonesia, India, Brazil, and Turkey.

Role of food in health. Potential to be better at meeting consumer needs. Processed Foods. Māori economy. Potential to capture more value from the value chain.

Slide courtesy of A Call To Arms “A contribution to a New Zealand agrifood strategy.”

Some of the weaknesses

Lack of intimate knowledge of Consumer needs particularly in emerging markets.

Fragmentation within and between sectors and Government, and along the value chain.

Low levels of investment in R&D by industry. Lack of access to capital. Low level of overseas direct investment. Need for more capability.

Slide courtesy of A Call To Arms, a contribution to a New Zealand agrifood strategy.

Understanding consumers

We must develop new products to meet changing consumer needs in both emerging and traditional markets, particularly the drive towards health and wellness through diet, and the desire for “fresh” characteristics of food.

Recent improved market access to China and South East Asia has sharply increased prospects for New Zealand food exports.

Major shift to Functional Foods

It is being increasingly recognised that many foods have a health value beyond their nutritional contribution:

Such foods are termed “functional foods” and their importance has long been implicitly recognised in folklore and in cultural values of many societies.

The science behind these effects is only now becoming understood

Global functional foods and nutraceuticals business estimated to be grow to US$200 billion by 2016.

Continuum of Foods through to Pharma

Pharmaceutical

Dietary

supplements

Nutraceuticals

Functional Foods

Fortified Foods

Nutritionally

enhanced Foods

Conventional Foods

(Rowan et al 2005)

Global challenges to accelerating growth

Volatile economic factors.

Changing consumer demands.

Substantial global change.

Rising and volatile energy costs.

Need to reduce atmospheric, river and ocean pollution.

Significant capital investment.

Slide courtesy of A Call To Arms, a contribution to a New Zealand agrifood strategy

Our main opportunity is to create critical mass working across New Zealand’s science and business ecosystem

Building upon the strengths of New Zealand’s agrifood innovation;

And upon New Zealand’s processing, supply chain and international marketing expertise;

Adding world-class expertise in food science, human nutrition and health.

Centre of Research Excellence (CoRE) for foods and nutrition, funded by New Zealand government and supported by industry

Internationally renowned and well-connected A collaborative partnership between academics/ researchers from:

Riddet Institute – A Partnership

Auckland (University of Auckland)

Bringing together New Zealand’s best talent in food and nutritional sciences

Wellington(Victoria University, MacDiarmid Institute)

Palmerston North(Massey University, Plant & Food, AgResearch, Fonterra)

Dunedin(University of Otago)

Christchurch(Plant and Food, University of Canterbury)

Hamilton (AgResearch)

Connected in New Zealand

1. World class fundamental and strategic research

2. Developing human capital (tomorrow’s leaders)

3. Transferring new knowledge to stakeholders

4. Partnering with industry (preferred partnerships) to identify and develop IP.

Riddet Institute Objectives:

What Riddet offers:

A platform of true research excellence

A platform of national collaboration

A platform of cross-disciplinary collaboration

Superb international science linkages

A track record of working as partners with industry.

Research Platforms

FoodMaterials

&Structures

Modelling and

Engineering

Gastro-IntestinalBiology

Innovative Food Solutions

Chemistry, Physics, Mathematics, Engineering, Biology,Materials Science, Nanotechnology, Digestive Physiology

Nutrition, Microbial Ecology

Strong basic science

Strong industry linkages

(with Govt. Support)

Novel products in market

Riddet Institute Industry

BIOLYSINE™

20

Riddet Innovation

Research Programmes (non-CoRE)

Functional Foods and Novel Ingredients

Weight loss foods/Satiety

Food formulation and sensory analysis

Marine omega-3Probiotics

AntioxidantsNanoencapsulation

systems

Food Protein structures

and Interactions

Bioprotection and delivery of bioactives

Health promotingproperties of kiwifruit

Ingredients interactions and

food matrix structures

Protein Hydrolysates

(bioactive peptides)

Market analysis, particularly in Asia and South America, and eventually in India, and through understanding of consumers and their needs.

Directly transacting with end users. Targeting affluent markets, particularly the places where

affluent people shop. New science and technologies, particularly in the

processing of foods and beverages and in the health and wellness arena.

Increased investment into the development of smart ingredients.

Slide courtesy of A Call To Arms “A contribution to a New Zealand agrifood strategy.”

Transformational Strategies

“New Zealand is recognized and supported by key industries and investors around the world as a premier centre for food and beverage product and process innovation.”.

“In meeting global demand, New Zealand will increasingly be recognized by consumers as an innovative and productive source of natural products that contribute to their health and well-being, whilst protecting the pristine environment they are derived from.”.

A key enabler – increased investment in RD&E

Build stronger technology platforms/centres of excellence in:

consumer insights; supply chain; human health and wellness; food functionality, structure, digestibility, texture and

‘fresh’; processed foods; on-farm systems; sustainability; renewable forms of energy.

Key success factors

Willingness of businesses to participate and collaborate

Selecting and focussing on the right niche opportunities where New Zealand is unique and has a USCA

“Cooperatition” i.e. compete as usual but collaborate and focus together on much larger new opportunities which cannot be taken on alone due to technical and market risk – create scale and integrated approaches along the value chain

Financial resources.

Thank you.