Holland to Benefit from NZ Formula Crisis – Expert

Media Release :                                                                                          5 August 2013

Holland to Benefit from NZ Formula Crisis – Expert

A top Kiwi milk powder manufacturer is warning the latest infant formula crisis will see western European competitors take advantage of New Zealand’s tarnished brand, and secure contracts in our key export markets.

The CEO of Peak Nutrition, Stephen Julian, says Holland and Germany are already well positioned to profit from New Zealand’s dairy issues and sign deals with some of our traditional export partners like China.

Julian says Holland currently exports around eight billion dollars in dairy products compared to New Zealand’s ten billion annually.

“If you look at the global players, the Dutch market has been hot on our heels for a long time, they are renowned for their dairy production and have much to gain from our latest dairy crisis and Germany isn’t far behind.

“China is a critical market for us and this is not the first time we’ve been embroiled in a dairy scandal, we know how particular the Chinese are about standards and this will impact heavily on our industry as a whole.”

Julian says while his milk powders are not affected by the crisis, as they are made using wet blend technology and are produced and packaged locally, he sympathises with Kiwi parents who are confused about what products are safe for them to purchase for their children.

Julian says it is these Kiwi mums and dads who have most to lose from the latest crisis and the loss will be two-fold.

“Not only are these parents faced with a situation where they are unsure of which formula is safe for their child, the on-going economic repercussions for the nation as a whole could be catastrophic,” he says.

“It is sad to see our global reputation as one of the most trusted dairy producers damaged once again in such a high profile way. We have to hope that this crisis does not affect the New Zealand brand so gravely that it impacts our other primary food producers.”

Julian says compounding the issue for New Zealanders is the frustratingly slow release of information preventing local consumers from identifying affected brands.

Julian who has been exporting food and beverage products to China for more than a decade, has for some time been advocating for greater controls around labeling to maintain the integrity of the New Zealand brand to the local and Chinese markets.

“Product labels can be very misleading to parents who read them and think they are buying a Kiwi-made product when that’s simply not true at all.”

Julian says the “Made in NZ” label should not be used without regulation and should only be used on products that are manufactured as well as packed locally. 

“Sometimes all of the ingredients cannot be sourced in NZ as they are simply not produced or manufactured here, however this  needs to be stated on labels so the consumer is aware and can make an informed decision and this is what we do on our own labels,” says Julian.

Peak New Zealand is a 100% Kiwi-owned and operated company established in 2012. Peak New Zealand formula milk and vitamins-enriched milk powder products are manufactured and made in NZ from local dairy cows in state-of-the-art manufacturing facilities approved and audited by the NZ Food Safety Authority.

For more information visit www.peaknewzealanddairy.co.nz

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ENDS

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