the fonterra research centre

Vol 56, No 3 August 2003 International Journal of Dairy Technology

127

F O C U S O N D A I RY R E S E A R C H

*E-mail: [email protected]

© 2003 Society of Dairy Technology

Blackwell Publishing Ltd.

The Fonterra Research Centre

JEREMY HILL*

Fonterra Research Centre, Fonterra Co-operative Group, Private Bag 11 029 (Dairy Farm Road), Palmerston North,

New Zealand

Keywords

Dairy products, Fonterra, Fonterra Research Centre, History, New Zealand Dairy Research

Institute.

*E-mail: [email protected]

H I S T O R Y

With the formation of the Fonterra Co-operativeGroup on 16 October 2001, the New ZealandDairy Research Institute (NZDRI) became asubsidiary of one of the world’s largest dairycompanies, and was renamed the Fonterra ResearchCentre (FRC) on 1 June 2002. In June 2003 theFRC became an integral part of a new Marketing& Innovation Group within Fonterra.

The NZDRI was founded in 1927 as a branch ofthe Department of Scientific & Industrial Research(DSIR), close to the current site of the FRC in Palmers-ton North. The FRC is built on a proud history ofNZDRI achievements that has seen the significantdevelopments in the dairy industry matched and,in many cases, facilitated by NZDRI developments.The history of the NZDRI is covered in two booksthat marked its 50th and 75th anniversaries.

1,2

The 75-year history of the NZDRI is summar-ized in the following:

1920s

−−−−

1930s

The New Zealand dairy industryhas 240 dairy companies, and the DRI 27staff

1927 The NZDRI is founded as a branch of theDSIR

1928 Professor W. Riddet is appointed Directorof the DRI

1929 DRI organizes the New Zealand dairyindustry’s first Dairy Science Conference

1931 The New Zealand National Milk GradingSystem is initiated, following work of theDRI on the quality testing of milk

1935 Hugh Whitehead identifies bacteriophageas the cause of cheese starter failureDRI isolates and identifies Nisin fromStreptococcal strains in cheese milk

1937 Major milk pasteurizing and bottle exerciseto promote ‘Milk in Schools’ scheme

1939 DRI builds its first purpose-built starterculture laboratoryDRI develops single starter strains forcheesemaking

1940s

The New Zealand dairy industry has 230dairy companies, and the DRI 33 staff

1940 Development of a commercial method forthe production of anhydrous milkfat in NewZealand as a response to butter storageproblems during wartime conditions

1944 Work starts on by-products, such as skimmilk powder—the focus had been on cheeseand butter with the skim milk being used asfeed for pigs

1945 Design of a machine to measure firmnessof cheese bodyDRI cheese R&D is expanded to includenon-Cheddar cheese varieties such as bluevein, Cheshire, cottage and Gruyere

1947 NZDRI’s first Annual Report is issuedDRI becomes incorporated under TheReligious, Charitable & Educational TrustsAct of 1908

1948 The first paper published by the DRI is onmethods of drying milkFixed cheese vats are developedMechanization of cheese manufacture begins

1949 Application of the Vacreator for creamtreatment

1950s


1950 First trials of reconstituted milk from skimmilk powder and cream or unsalted butter

1953

The Buttermaker’s Manual

is published bythe DRI

1955 Improvements are made to anhydrous milkfat (AMF) plants—these are still used intoday’s process

1957 Hot press for wrapping cheese is developedand commercializedCommercial plant for the production ofinsoluble lactalbumin is designed andcommissioned

1958 The Cheddarmaster system for cheese-making development is started

1959 Dr Hugh R. Whitehead is appointedDirector of DRI

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128

1960s


1960 Routine tests for penicillin and other anti-biotic residues are developed—manufacturedby a commercial companyInstant wholemilk powder is developed

1961 Procedures for the disposal of factorywastes are formalized in conjunction withthe Ministry of Works

1962 Research into development of a method formaking a hard grating cheese, marketed asNuzano

1963 The Cheddarmaster system for mecha-nized cheesemaking is commercializedThe Annual Meeting of the InternationaDairy Federation (IDF) is held in PalmerstonNorth

1964 DRI Staff Association is establishedDRI Director, Dr Hugh Whitehead, retires

Dr Frank McDowall is appointed Director1965 Dr Frank McDowall retires

Dr Bill McGillivray is appointed DirectorPilot-scale evaporator and drier are installed

1965 DRI moves from Massey University to a newbuilding on its current site, and is renamed theNew Zealand Dairy Research InstituteA decision is made to diversify productsand markets in anticipation of the primarymarket (the UK) joining the EuropeanEconomic Community (EEC)The

New Zealand Journal of Dairy Techno-logy

(later the

New Zealand Journal of DairyScience and Technology

) is published1966 NZDRI’s new Processing Hall is completed

Work begins on fat fractionation for produc-ing a more spreadable butter and a range of fatfractions for confectionery and bakery use

1967 Major re-emphasis on new processes andnew product development in response tomarket stimuli

1970s

The New Zealand dairy industry has 98dairy companies, and the NZDRI 202 staff

1970 Fat fractionation work leads to the com-mercial production of ‘Easy Spread Butter’Work on industrial uses of casein leads toexploration of functional properties of caseinand other proteinsThe Dairy Industry’s Graduate TrainingProgramme (DIGTP) begins its first coursewith five trainees

1972 Cheese mechanization—extensive work iscarried out, including designs for ‘Cheddar-ing Towers and Large Hoops’

1975 Mobile laboratory is designed and com-missioned for monitoring factory effluentWork on excessive nutrient losses in wheydischarges

1977 50th Jubilee Conference on Dairy Scienceand TechnologyFurther work on fractionation produces‘Super Spread’ butterComputerized process control system forcontrol of evaporation and spray-dryingprocesses is developedThe Central Union of Swiss Milk Pro-ducers (Berne) awards the International Prizefor Modern Nutrition to Terry Thomas

1978 NZDRI’s 50th Jubilee

New Zealand Dairy Research Institute: AHistory of the First Fifty Years, 1927–1977

,is publishedSingle pair starters are introducedcommercially

1979 Tubular washing of casein curd is developedCommercial production of 850 kg blockbutter for exportDr Bill McGillivray retires as NZDRI Director

Figure 1 1940s. Massey Agricultural College main building, in which the DRI was housed.

Figure 2 1950s. The experimental dairy factory at Massey Agricultural College.

Figure 3 1960s. NZDRI main building, opened 1966.


129


1980s

The New Zealand dairy industry has 98companies, and the NZDRI 285 staff

1980 Dr Peter Robertson is appointed Directorof NZDRIMilk powders are developed to meetspecific customer requirements

1981 The Ammix process, which improved flav-our, texture and storage in buttermaking,is introduced, paving the way for futurework in the fractionation of milkfat

1982 Work on the use of whey protein andcasein powders for functional purposesin baking, meat products and confectioneryWhey is established as a fertilizer

1983 The first commercial Ammix plant is com-missioned at Tai Tapu Dairy CompanyDevelopment of direct-to-silo set starters forlactic acid casein manufacture

1984 Dr Lawrie Creamer is awarded the Miles–Marschall International Award by theAmerican Dairy Science Association

1985 DAIRYsearch is launched—the dairy indus-try’s R&D database

DRI News

is published1986 The Energy Centre for Dairy Products

Development Centre is constructed1987 Work on incorporation of dairy proteins in

processed meatIntegral fluid bed spray drier is designedand commissioned

1988 Dr Geoff Page succeeds Dr Peter Robertsonas Director of NZDRIFraction used in commercial production ofpastry butter and butter shortening for thecatering/baking tradeFernleaf Semi-Soft Butter is launched, andsubsequently wins the PrintPac UEB Awardsin two categories—Dairy Foods and NZIFSTAward to Food TechnologistsThe Starter Production Unit (SPU) opensThis year sees the launch of high proteinpowder developed for recombining

1989 Alaco speciality butterfats wins the PrintPacAward in the Industrial Products Category

1990s

−−−−

2000s

The New Zealand dairy industry has16 dairy companies, and the NZDRI 254 staff

1990 Mr Peter Jensen is appointed Chairman ofthe NZDRI BoardConfectionary research facilities are set upPilot-scale production of cholesterol-freeand cholesterol-reduced dairy products

1991 Anchor Spreadable Butter is launched inthe UKNZDRI receives the Dairy Non-Cheese Cate-gory Award and the Premier PrintPac-UEBAwardThe NZ Institute of Food Science &Technology Award of Alaco flavour rich milkpowder, specially developed for chocolatemanufactureProcess for stripping lactoferrin from wheyis developed with Tatua Co-op Dairy Co.

1992 Dr Kevin Marshall is appointed Chief Execu-tive of the NZDRI

Figure 4 1970s. Aerial photograph of NZDRI site 1970.



Figure 7 2000s. NZDRI administration building opened 1997.



130

Genome sequencing of bacteriophage C2is completed—the first whole genome to besequenced in New Zealand

1993 Mr Doug Bull is appointed Chairman of theNZDRI BoardMr Howard Heap receives an OutstandingAchievement Award from the Dairy Tech-nology Society (NZ) Inc.Joint work starts with Livestock Improve-ment Corporation on milk characteristicsDevelopment of natural starter distillateNew laboratories are set up for confection-ery, ice cream and bakery goodsOpening of refurbished Pilot Plant

1994 Flavourtech Spinning Cone technology iscommercialized for buttermakingAward is received for development of StretchCurd MEstablishment of ‘Dairy Nutrition & Health’,an alliance between NZDRI, the New Zea-land Dairy Board and Massey UniversityPrintPac UEB Awards are received for Pas-try Butter 34, Alatal 821 (hydrolysate usedin hypoallergenic products), Alaco whippingcream base and Alaco cream powder

1995 Dr Peter Munro is elected as a Fellow ofThe Royal Society of New ZealandAwards are received for the development ofnew cheese powdersTrial with Kaikoura Co-op Dairy Companyto increase cheese production from exist-ing milk through selective breeding

1996 Awards are received for Alacen 895 (wheyprotein isolate for protein-fortified sportsdrink market), Anchor Reserve Butter andMozzarella J Cheese

1997 Developments in knowledge of calciumsource and fortification technology, whichis used in Anlene Gold, Andec and Annum.Anlene Gold is launched in Taiwan, Malay-sia, Hong Kong, China and the PhilippinesTrials and procedures are developed to convertfarm vat chillers from chlorofluorocarbons(CFCs) to hydrofluorocarbons (HFCs)

1998 Dr Allan Anderson is appointed ChiefExecutive of NZDRIMr Howard Heap wins The Royal Society ofNew Zealand Science & Technology MedalMr Graham Fraser is appointed Chairmanof the NZDRI BoardThe first NZDRI Showcase is held, to demon-strate new product concepts to markets

1999 The first NZDRI Distinguished ResearchAwards are granted to Dr Lawrie Creamer,Mr Howard Heap, Dr Peter Munro andDr Jim BarnettMr Harry Bayliss is appointed as Chairmanof the NZDRI BoardBo-Vine is launched—NZDRI’s Intranet

NZDRI pioneers use of Fieldbus DigitalTechnology to control SPU process controlsystemsSPU is expandedThe links between milkfat and improvedheart health are discovered in a joint studywith the University of Auckland

2000 Dr Terry Thomas is awarded a Dairy Indus-try Association of New Zealand (DIANZ)Distinguished Service AwardDr Vaughan Crow is awarded the 2000Marschall Rhodia International DairyScience Award of the American DairyScience AssociationCraig Honoré and Keith Johnston are awardedan Outstanding Achievement Award by DIANZDr Lawrie Creamer is awarded the R J ScottMedal in Engineering Sciences by TheRoyal Society of New ZealandDr Vijay Bhaskar is honoured with a Dis-tinguished Research AwardThe International Reference Method fordetermining fat content in butter, edibleoils and spreadable fats is adopted as anISO/IDF Standard 17189

2002 NZDRI’s 75th Jubilee

Today the FRC is one of the world’s largest dairydedicated research facilities, with over 300 staff.The FRC sits within the Fonterra Marketing &Innovation Group, with the responsibility forleading innovation and value-added businessgrowth across Fonterra’s global business.

S T R U C T U R E

The FRC has 11 Technical Teams, supported byFacilities Management, Human Resources, andFinance Groups. Co-located at the FRC site areFonterra’s Starter Group and Starter ProductionUnit, with responsibility for the production andmanagement of cheese and casein starters for allFonterra manufacturing plants, and Fonterra’sKnowledge Management Services Group. Also co-located at the FRC is a marketing and businessmanagement structure responsible for directinginnovation activities and capturing technology-ledinitiatives. Such co-location highlights the com-mercial focus of R&D, and the importance withwhich Fonterra views technology.

F U N D I N G

Over 90% of the approximately US$20 millionR&D activities of the FRC are funded by theFonterra Co-operative Group, with less than 10%of funding from the New Zealand Public GoodScience Fund in the form of contestable researchcontracts.


131


A C T IV I T I E S

Technical Teams are involved in two primaryactivities:

1

concept development and evaluation to createcommercial options;

2

commercialization of options to create added-value products and processes for Fonterra.In addition, R&D staff are involved in technicalsupport of existing business activities and training.

A Technical Manager manages each TechnicalTeam, and is responsible for the delivery of R&Doutputs that will add value to the business by:• defining what R&D outputs are needed to meet

business objectives;• identification of the capabilities needed to deliver

these outputs;• management of R&D staff and other capabilities

needed to deliver the outputs.In supporting such a large global business, theR&D activities of the FRC are wide-ranging. How-ever, although supporting on-farm based R&D ledby other organizations, such as the New Zealand dairyfarmer funded organization Dexcel, the FRC focuseson dairy processing and dairy product development.

Health & Bioactives Technical Team

The focus of this team is the creation and evalu-ation of health and bioactive concepts to create newoptions for and to support Fonterra businesses.This team also has the responsibility for supportingLactoPharma, the milk bioactives discovery jointventure between Fonterra and the University ofAuckland.

Bioscience Technical Team

The focus of this team is the creation and evalu-ation of new products or processes using expertisein biochemistry and molecular biology. The teamalso plays a key role in leading areas relating to theuse of genetic tools/methods, New Zealand Envi-ronment & Risk Management Authority researchpermit applications, and in the provision of R&Dto support Fonterra starter and culture businesses.

Process Technologies Technical Team

The focus of this team is the creation and evalu-ation of new processing options that produce majorstep changes in the processing of existing productsor new processes to create new products. Theteam has a key role in developing new options forFonterra’s manufacturing plants.

Food Systems Technical Team

This team’s focus is the creation and evaluation ofconcepts that create new functional ingredients andapplications, using expertise in food componentchemistry and technology.

Cheese Foods Technical Team

The role of this team is to lead the provision ofR&D support for innovation needs of Fonterra’scustomers in the broad areas of cheese foods.

Nutrition & Milks Technical Team

This team’s role is to lead the provision of R&Dsupport for innovation needs of Fonterra’s cus-tomers who buy ingredients for use in nutritionaland milks applications.

Applications Development Team

This team focuses on four activities:• leading the provision of R&D support for inno-

vation needs of Fonterra’s customers relating tofresh dairy products;

• provision of a rapid response applications/proto-typing capability;

• leadership and provision of sensory evaluationcapabilities for marketing and innovation andacross FRC;

• provision of statistical support.

Food Assurance Team

The focus of this team is leading the provision ofR&D support for food assurance across Fonterra,including the development of chemical and micro-biological analysis methods. The team has a keyrole in supporting Fonterra’s regulatory groupsand manufacturing operations, and Fonterra’sconsumer business in risk analysis.

Manufacturing Efficiency & Consistency Technical Team

This team’s role is to support other technical groupswithin Fonterra responsible for driving incre-mental process improvements in manufacturing.

Analytical Services Team

The role of this team is to provide timely routineanalytical chemical and microbiological analysisservices to other technical teams and specialist ana-lytical services to other groups throughout Fonterra.

Pilot Plant Team

This team’s role is to provide Fonterra with a com-prehensive pilot plant capability for product andprocess development. The team works closely withother aligned capabilities at Fonterra’s manufactur-ing plants.

Training

Since its formation, the NZDRI has had an activerole in dairy education and training. This takesthe form of skills courses focusing on dairy manu-facturing operations, applications courses teachingthe use of dairy ingredients in various food appli-cations, and the teaching of graduates. Since 1970the NZDRI/FRC has, in conjunction with Massey



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University, operated a graduate training pro-gramme, now called the Fonterra Graduate Train-ing programme. The programme is targeted at newtechnical graduates who have been recruited byvarious Fonterra business units and, particularly,manufacturing operations. It is also open to otheremployees of Fonterra and often has participantsfrom Fonterra’s overseas companies. Each yeararound 15–25 students enter the programme,which is essentially a sandwich course, witheach student spending periods in company opera-tions, and results in the award of a Masters ofDairy Science & Technology from MasseyUniversity.

Facilities

The FRC site occupies 3.2 hectares, including aPilot Plant of 4270 square metres, and over 4124square metres of laboratories.

Specialist equipment includes the following:• induced coupled plasma–optical emission spec-

troscopy (ICP-OES) instrument for elementalanalysis;

• LECO for Dumas nitrogen analysis;• two gas chromatography (GC) systems for routine

analysis of fat components, such as fatty acidmethyl ester (FAMES)/conjugated linoleic acid(CLA)/cholesterol, and for carbohydrate analysis;

• four high-performance liquid chromatography(HPLC) systems with a range of detectors foranalysis of various vitamins (A, E, K, C, D, Kand beta-carotene), plus furosine/glucosamine/amino acids/galacto-oligosaccharides, etc.;

• ion chromatograph for anion analysis;• accelerated solvent analysis instrument for fat

extraction and analysis;• segmented flow analysis equipment for lactose

and nitrate/nitrite analysis;• Zymark robot for automated fat extraction;• TX-XT2 texture analyser;• Blentech mixer;• equipment for recombining, pasteurizing and

homogenizing;• TurboScan, for turbidity measurement;• Hunterlab Miniscan (colour meter);• Instrom, stomacher;• AquaLab water activity meter;• bakery equipment, i.e. pizza oven, ovens,

Stephan mixer;• Malvern 2000 particle size analyser for particle

size distribution (PSD) measurements;• Karl Fisher moisture analyser for powders;• other functional /general analysis equipment for

total solids (vacuum oven), functional tests for solub-ility index, whey protein nitrogen index (WPNI),bulk density, flowability, viscosity, dispersibility;

• Thin film evaporator;• ultra-high-pressure (UHP) processor;• microfluidizer (homogenizing small volumes at

17 000 psi, instead of the usual 3000 psi);• Flavourtech spinning cone column;• two HPLC instruments for minor protein frac-

tion determination;• Fast protein liquid chromatography (FPLC) for

protein separation;• differental scanning calorimeter, for measuring

the melting and crystallization behaviour of milkfat;• Bruker nuclear magnetic resonance (NMR)

spectrometer, for determining solid content offat at different temperatures;

• texture analyser and lab fat reworker;• inverted microscope (Olympus IX70) with long

working distance condenser and special factoryfitted magnification enhancer;

• polymerase chain reaction (PCR) equipment—Applied Biosystems 9700 (microtitre platecapacity) and 480 thermal cyclers;

• Biorad gel documentation system and associatedequipment (UV transilluminator, scanner, etc.)for the capture of electrophoresis gel and auto-radiograph images;

• Gel Compar analysis software for analysis andmanipulation of gel data;

• Applikon Fermenters—five bench-scale 2-litreautoclavable glass bioreactors with pH, foamand dissolved oxygen control;

• Virtis Bench Top Freeze Dryer for the lyophil-ization of micro-organisms and biologicalmaterial;

• Lab SMART Software system for use in micro-biological and enzymic assays.

C O N T A C T S

For more details about Fonterra and the FRC, seewww.fonterra.com.Tel.: + 64 63504659; fax: + 64 63501476.

A C K N OW L E D G E M E N T S

The author thanks Gail Haydock and the FRCGraphics Team for their support in the preparationof the material contained in this paper.

R E F E R E N C E S

1 McGillivray W A (1978)

New Zealand Dairy ResearchInstitute: A History of the First Fifty Years 1927–1977.

Palmerston North, New Zealand: Stylex Print Ltd.2 Schwass M (2002)

The Challenge of Change. New ZealandDairy Research Institute.

Palmerston North, New Zealand:New Zealand Dairy Research Institute.

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