Affordable nutrition for the developing world 

The pressure is on for marketers to create market appropriate, and affordable dairy products for developing markets 

One of the ongoing challenges for marketers of dairy ingredients into the developing world is delivering products that suit consumption habits; consumer preferences in taste, satiation and texture; meet daily nutritional and functional requirements ….. and are affordable.

While the incomes of consumers in destination markets are gradually rising, bringing a larger segment of population into income bands that can seek out dairy nutrition, some of the more likely scenarios presented in LongView suggest rising commodity values due to supply side limits on production. These factors risk moving dairy nutrition away from the reach of a wider target market.   

To achieve this, science and innovations in technology are pivotal to address this challenge, while solutions need to be adapted to the local context, including scope to integrate with efforts to build local farm development and local R&D facilities. Some processors and marketers are well down the track with these initiatives – many have been caught watching from afar.

What does this impact?

If the global outlook is supply constrained, the ingredient demand from developing regions will essentially be rationed to available demand at elevated values. The pressure on innovators to adapt to these economic conditions will be immense – else dairy retreats to a niche category for those who can afford it.