Biosecurity Summit: Biosecurity integral to dairy industry success
Mark Leslie: Perceptions of New
Zealand as a safe, secure
source of product is vital
to Fonterra's business
Fonterra's General Manager of Sustainable Milk Supply, Mark Leslie, reminded the Biosecurity Summit of the scale of New Zealand's dairy exports. Each month, he said, 200,000 to 250,000 tonnes of Fonterra's product is shipped to markets in 140 countries.
"The absence of significant pathogens causing production losses is a key competitive advantage and economic driver for New Zealand in the international market relative to most other overseas animal industries. Maintaining this advantage is vital."
Not only does the dairy industry need to be free of significant animal diseases such as foot and mouth and BSE, plant pests such as the clover root weevil can also affect the sector.
Varroa provides a similar example, not only affecting local honey production but increasing the costs of pollinating crops, including pasture, seed crops and kiwifruit.
For Fonterra, biosecurity is vital for maintaining trade.
"The absence of significant pathogens and the disease they cause implies healthy stock and a healthy product. That creates a positive perception of New Zealand goods. Some of Fonterra's largest customers with big global brands select Fonterra and New Zealand-sourced product because of our products' safety," Mark said.
Key ingredient base
Some of Fonterra's largest customers are Nestlé, Kraft, Danone, Wyeth and Abbott. They view New Zealand-sourced product as a key ingredients base because of safety and security of supply.
"One incident caused by an ingredient could destroy a major international brand.
"Fonterra relies heavily on customer partnerships. We aim to become so entwined in their businesses that we become their supply chain, their product development team. In short we become increasingly indispensable to their business success. But we need to be able to ensure consistent, safe supply reliant on biosecurity systems."
Mark also pointed out the negative economic impact on the dairy industry of a human disease which might sneak across the border. He said an avian influenza pandemic would affect farm and manufacturing staff, all of whom are handling a perishable product.
He gave an example of the impact of a biosecurity breach not too far from home. When BSE hit Japan, 64 companies were forced into bankruptcy with a total liability of a third of a billion US dollars in the first nine months – a vivid example of the downstream effects from a single disease incursion.
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Page last updated: 30 April 2008