Ireland currently processes 5.6 billion litres of milk annually, and this figure is set to rise by 50% by 2020. Food Health Ireland (FHI) is an innovative collaboration between seven major Irish public research organisations and Glanbia, the Kerry Group, the Irish Dairy Board, Carbery and Dairygold. Its purpose is to identify novel ingredients coming from milk to develop functional food ingredients that will offer health benefits to consumers.
Fuelling growth in the sector are three key trends that will significantly influence the expansion of the Irish dairy ingredient sector and revolutionise its portfolio of ingredients for many years to come. These are: increased global demand for dairy, the power of dairy as a functional ingredient and the intensified engagement of Ireland’s dairy industry in a higher R&D value chain.
Global demand for dairy
First and foremost, the demand for dairy globally continues to grow, driven primarily by expanding populations, surging incomes and BRIC countries’ urbanisation. The enhanced Westernisation of these nations has led to a worldwide demand for dairy that far exceeds domestic supplies.
China, India and the Middle East in particular cannot seem to keep pace with such demand, leading to increasingly lucrative opportunities for export-focused dairy ingredient companies. Europe’s abolition of dairy quotas in 2015 means this increased global demand is quite timely.
Although Ireland is clearly not the only country to capitalise on this, it does have an advantage over other large European dairy-producing nations such as the Netherlands, Denmark and France – these countries supply a significant domestic market, but Ireland traditionally exports over 80% of its processed dairy.
With Ireland’s strong trade links to its neighbouring countries and its vast export experience with developing markets, preparations to handle the increased dairy outputs are well under way. Ireland has recently witnessed significant investments by its indigenous dairy giants to step up to the challenge. Dave McDonagh, R&D director at Glanbia Ingredients Ireland, believes the country’s dairy ingredient sector has never been in a better position to compete globally:
"We will have one of the fastest-growing dairy industries in the world once quotas end in 2015. Ireland is gearing up to become a scalable, sustainable and low-cost dairy processing base with great growth potential," he says.
Other Irish companies are also focusing beyond local markets. Paul Bouchier, head of R&D at Dairygold, says: "We are operating on a far larger scale and supplying wider geographical areas than ever before. In the past decade, we’ve seen demand for our high-quality demineralised whey grow in emerging markets such as China, where Irish dairy ingredients are the favoured option for infant formula."
Milk as a functional ingredient
The second key trend driving the future of Ireland’s dairy ingredient portfolio is the enhanced consumer perception of the power of dairy as a functional food and the mounting scientific evidence supporting it.
The most health-conscious consumers are becoming even more aware of the benefits of protein above and beyond basic nutrition. This is leading to a steady increase in the demand for high-quality protein, particularly within the dairy industry.
Until recently, whey proteins were the dietary fuel of choice for bodybuilders and elite athletes, but they’re slowly making their way into mainstream consumer foods and beverages. Every minute, six people aged over 65 suffer a fall, and those who do are two to three times more likely to fall again, but falls are preventable. After 40, 1-2% of muscle mass is lost every year. Research shows this rate can be decreased by exercising and consuming proteins containing high levels of branched-chain amino acids. This can lead to a reduction in the risk of falling and the subsequent bone breaks or fractures, which are much more difficult for seniors to recover from.
Carbery marketing manager Pauline Taggart believes enhanced dairy protein could be the key to maintaining muscle strength and independent living.
"With a globally aging population, the ‘boomers’, now in their late 50s and 60s, wish to maintain and prolong a healthy, independent lifestyle into their elderly years. This is mirrored by government officials, policymakers and healthcare institutions, as healthcare costs for the elderly alone are due to spiral out of control if preventative measures like age-appropriate nutrition aren’t considered."
When it comes to infant nutrition, the Irish dairy sector is the major supplier of nutritional solutions targeting infants worldwide. As this group is particularly vulnerable when it comes to nutrition and health, the high standards of the Irish food safety control systems, along with the quality of the grass-based dairy produce, have been key in achieving this position.
Currently, 20% of babies being fed infant formula worldwide are consuming products made in Ireland. Infant milk formula has recently been championed as the most successful recession-proof functional food. With a global market value of $32.2 billion, it is projected to achieve double-digit growth in emerging markets to 2017.
Intensified engagement in R&D
Increased R&D investment in Ireland by Irish ingredient suppliers is the final trend. It is one of the leading countries searching for the latest novel dairy ingredients with functional health benefits. It’s small size and flexibility is a definite advantage where this type of collaboration is concerned.
FHI’s research focuses on infant nutrition, healthy cheese, performance nutrition, appetite modulation and healthy aging, as well as products used to manage glucose levels in type 2 diabetics. The health and wellness market is worth $156 billion and is expected to grow 2-8% annually.
Building public-private partnerships in food and nutrition is challenging. Successful ones are typically dedicated to achieving common goals; however, agreeing on one does not necessarily mean that everyone expects to benefit in the same way. Different entities have different expectations – or hopes – for what they will gain. Reaching an understanding of those expectations is the first step towards finding the common ground necessary for collaboration.
Another challenge is that research needs to be translated in a way that industry can commercialise, at a time when they need it. The FHI approach is to work with and alongside industry partners, and in close connection with the scientists, over time. The FHI has built a unique bridge between high-class research organisations and industry needs. This is truly an exciting time for food and health research in Ireland.
