Transforming the Dairy Value Chain

Transforming the dairy value chain – DairyNZ and Fonterra are leading a PGP programme aimed at creating new products, increasing on-farm productivity, reducing environmental impacts, and improving agricultural education.


The challenge

cows in a field
Building capability and knowledge in the dairy value chain.

Dairy is New Zealand's most significant industry. Innovation throughout the dairy value chain is therefore essential to anchoring not only the position of New Zealand dairy, but the whole New Zealand economy.

This programme involves DairyNZ, Fonterra, Synlait, Landcorp, LIC, New Zealand Young Farmers, Agricultural Services Limited and ZESPRI.

The solution

The programme is aimed at transforming the dairy value chain through investment in building capability and knowledge.

It is also contributing to the building of two platforms in food research and training that can be used by all New Zealand food and primary industries. This will also strengthen the position of New Zealand's food science community.

Fonterra is investing in this scientific capability and leading work to create new premium dairy offerings, including products with specific health and wellness benefits.

DairyNZ is investing to build capability in rural professionals so they can better support farmers to improve their nutrient, effluent and business management. Other on-farm work focuses on improving productivity.

About this programme

This PGP programme consists of 2 sub-programmes covering the dairy value chain.

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A. Pre-farm gate

The pre-farm gate sub-programme is led by DairyNZ. Co-investors in this sub-programme are Synlait, Landcorp, LIC, New Zealand Young Farmers and Agricultural Services Limited. The 2 themes within the pre-farm gate sub-programme are:

Theme 1: On-farm Innovation and Research

The projects undertaken in this theme aim to increase the productive potential, resource use efficiency and product value behind the farm gate.

Activities include:

  • discovering the relationships between animal phenotype and genotype to increase the rate genetic gain in New Zealand's dairy herds;
  • developing fundamental knowledge on pasture persistence to extract greater value and certainty in the development and farm management of new forage cultivars;
  • understanding and realising the potential production and resource use efficiency gains available to dairy farmers through the application of Precision Agriculture on-farm;
  • supporting industry wide information capture and utilisation through the development of the Dairy Data Network.

Theme 2: Building Capability for a Sustainable Future

The projects undertaken in this theme aim to improve on-farm decisions through building industry capability, upskilling rural professionals, development of supporting networks and attracting more people into the industry.

Activities include:

  • development of rural professional capability and systems to provide enhanced and credible advice to farmers assessing their farm system and planning changes in key areas of effluent, nutrient, animal welfare and people management. This includes development of codes of practice where needed, training and industry owned certification systems for agribusinesses and accreditation systems for rural professionals;
  • development of Whole Farm System rural professional capability. Considerable expertise is required to provide advice on changes to dairy farm systems under environmental and other constraints. Alongside NZIPIM and agribusinesses the training and certification systems are being developed and implemented;
  • assistance with developing industry support networks that provide career services, professional development and wellbeing to recruit, retain and develop resilient dairy farmers.
Find out more about the pre-farm gate PGP programme

B. Post-farm gate

The post-farm gate sub-programme is led by Fonterra. Zespri is a co-investor in this sub-programme. The three themes within post-farm gate sub-programme of the Primary Growth Partnership programme on Innovation to Transform the Dairy Value Chain involves approximately 30 major projects and >100 milestones.

Theme 3: Transforming the dairy value chain through world-leadership in food structure design.

Food structure Design is an emerging discipline blending food science and technology and food engineering with the non-food discipline of materials science. This provides a new way to attack the challenges of food design that will enable New Zealand's food industry to develop and manufacture increasingly complex foods and ingredients required to meet the demand for healthier foods, customisation and individualism.

Theme 4: Transforming the dairy value chain through world-leadership in processing and food quality management

This theme is looking to deliver transformational science and technology that could result in a robust platform for the delivery of cost and efficiency gains throughout the supply chain and could enable profitable growth in emerging dairy regions.

Theme 5: Transforming the dairy value chain through robust human nutrition and health benefits

High quality nutrition that is demonstrated to deliver health benefits provides the best opportunity to add value to New Zealand's food exports. The targets are maternal and paediatric nutrition, and mobility. The work undertaken will help provide robust scientific evidence to support claims on the general and specific health benefits of dairy products manufactured by Fonterra.

Outcome logic post farm gate for Transforming the dairy value chain – November 2013 [PDF, 124 KB]

Outcome logic model

Outcomes to date

Audit

Key facts

Programme start: April 2011 
Length: 7 years 
PGP funding: $85 million 
Industry funding: $86 million
Crown funding paid out to programme for work done to 31 December 2016: $65,561,303.98
Commercial partners: Fonterra, DairyNZ Ltd, Livestock Improvement Corporation (LIC), Synlait Ltd, Zespri Ltd, Landcorp Farming Ltd, Fertiliser Association of New Zealand, Agriculture Services Ltd, New Zealand Federation of Young Farmers Clubs Inc
Estimated potential economic benefits to NZ: $2.7 billion per year by 2020.

Progress Review Report

Quarterly Progress Report Summaries

October-December 2016 - Transforming the Dairy Value Chain Executive Summary

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PGP Executive Summary

July-September 2016 - Transforming the Dairy Value Chain Executive Summary

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PGP Executive Summary

April - June 2016 - Transforming the Dairy Value Chain Executive Summary

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January-March 2016 - Transforming the Dairy Value Chain Executive Summary

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October-December 2015 - Transforming the Dairy Value Chain Executive Summary

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July-September 2015 - Transforming the Dairy Value Chain Executive Summary

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April - June 2015 - Transforming the Dairy Value Chain Executive Summary

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January - March 2015 - Transforming the Dairy Value Chain Executive Summary

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October - December 2014 - Transforming the Dairy Value Chain Executive Summary

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July - September 2014 - Transforming the Dairy Value Chain Executive Summary

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April - June 2014 - Transforming the Dairy Value Chain Executive Summary

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PGP Executive Summary

January - March 2014 - Transforming the Dairy Value Chain Executive Summary

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PGP Executive Summary

Quarterly Progress Reports: Dairy Pre-Farm Gate

October - December 2013 - Dairy Pre-Farm Gate Sub-Programme Executive Summary

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July - September 2013 - Dairy Pre-Farm Gate Sub-Programme Executive Summary

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April - June 2013 - Dairy Pre-Farm Gate Sub-Programme Executive Summary

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January - March 2013 - Dairy Pre-Farm Gate Sub-Programme Executive Summary

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October - December 2012 - Dairy Pre-Farm Gate Sub-Programme Executive Summary

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July - September 2012 - Dairy Pre-Farm Gate Sub-Programme Executive Summary

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April - June 2012 - Dairy Pre-Farm Gate Sub-Programme Executive Summary

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January - March 2012 - Dairy Pre-Farm Gate Sub-Programme Executive Summary

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October - December 2011 - Dairy Pre-Farm Gate Sub-Programme Executive Summary

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July - September 2011 - Dairy Pre-Farm Gate Sub-Programme Executive Summary

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Quarterly Progress Reports: Dairy Post-Farm Gate

October - December 2013 - Dairy Post-Farm Gate Programme Executive Summary

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July - September 2013 - Dairy Post-Farm Gate Programme Executive Summary

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April - June 2013 - Dairy Post-Farm Gate Programme Executive Summary

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January - March 2013 - Dairy Post-Farm Gate Programme Executive Summary

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October - December 2012 - Dairy Post-Farm Gate Programme Executive Summary

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July - September 2012 - Dairy Post-Farm Gate Programme Executive Summary

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April - June 2012 - Dairy Post-Farm Gate Programme Executive Summary

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January - March 2012 - Dairy Post-Farm Gate Programme Executive Summary

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October - December 2011 - Dairy Post-Farm Gate Programme Executive Summary

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July - September 2011 - Dairy Post-Farm Gate Programme Executive Summary

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April - June 2011 - Dairy Post-Farm Gate Programme Executive Summary

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