European Food Innovation and Technology Report 2013

Private l& Confidential 1

EUROPEAN FOOD INNOVATION AND TECHNOLOGY

FINAL TRIP REPORT

Implications and Opportunit ies for Maori Business

To:

Iwi Leaders

Maori Business Leaders

Maori Trusts and Incorporations

March 2013

Mr. Chris Karamea Insley

Owner and Managing Director

He whakatauki (a Maori proverb)

“Te manu e kai ana i te miro, mona te ngahere” (The bird that eats the fruit of the Miro, his is the forest)

“Te manu i kai ana i te matauranga, mona te ao”

(The bird that eats the knowledge, his is the world)

Private & Confidential 2

Contents

1. Introduction 4

2. European tr ip plan 5 3. New Zealand economic prof i le 7 4. The Maori economy 8 5. Government Innovation and Trade Reform l inkages 10

6. United Kingdom – European Profi le 13 7. Inst itute of Food Research (Norwich, London) 17

8. Leatherhead Institute (Surrey, London) 18 9. Wageningen Institute – The Netherlands 19 10. German Institute of Food Technologies - Germany 21

11. Swiss Federal Inst itute of Technology (ETH Zurich) - Switzerland 23 12. Festel Capital - Switzerland 24

13. New Zealand Universit ies, Crown Research Institute’s and local opportunit ies for col laboration 25

14. Conclusions and Opportunit ies for Maori business enabled by European Food Innovation and Technologies 29 15. Now then. . , how to make this al l happen (and quickly) 30


Executive Summary

Kia ora,

§ There are countless opportunities for Maori businesses, Trusts and Incorporations with food producing assets like land, cropping, agriculture,

horticulture, viticulture, fishing and other marine interests to add value to these assets through direct accessing of leading European

technologies and capabilities and applying these here at home.

§ It is clear from visiting the leading Food Technology Institutes across Europe that post-war, many of these economies not surprisingly have

sophisticated industrial technologies that pervade and enable much of their economic development today.

§ The Institutes we visited are engaged by the largest food companies of the world (i.e. Nestle, Unilever, Bayer and others) to undertake much of

their new product development across all food categories. It is clear that what is happening in the laboratories of these Institutes will shape

world consumer demand in the food sector out into the future.

§ Europe has to be an important source of new technologies to enable Maori busineses to succeed on the world stage. But, it is likely that the

major markets for products from our businesses enabled by european technologies will be in the emerging markets of China, India and South

America. Traditional markets like the UK, Europe, US and Australia will likely start to feature less in time.

§ The strategy for Maori food business therefore must be to seek and exploit the best food technologies of the world (and definitely from Europe)

and transfer these technologies directly across our businesses and particularly across the estimated 1.2 million hectares of underperforming

Maori lands. This is a relatively low risk but high return strategy and can happen quickly compared to the much more risky, time consuming and

very expensive strategy of doing new research and science from scratch.

§ Changes being made by government in terms of some of their reforms may enable Maori business to make this step but, it is unlikely that these

changes will bear any real fruit for 3 to 5 years (or more) for Maori business. We shouldn’t wait for government (or any one else) to take this

leadership role. The leadership must come from Maori directly, with Government, researchers and others playing a more supporting and enabling

role.

§ An overarching strategy will be in time to move away from passive leasing out of strategic assets like land, fish quota et al towards creating

new and wholly Maori owned value chains from raw materials through to end consumer. An important feature of these new value chains will be

to bring together multiple Maori businesses (separate Trusts) enabled by the worlds best technology and innovations.

§ Finally, we can not afford to sit around and do nothing! The opportunity cost (of doing nothing) will be hundreds of millions of dollars to our

collective whanau, hapu and Iwi. However, the inverse of this if done well is, the Maori economy could grow to equal the size of the non-Maori

economy in as little as10 years.


1. Introduction Growing global need for food. 1

The global population continues to increase and has just passed the seven billion people mark. At the same time, the rising middle class in Asia has

increasing disposable income leading to increasing demand for premium, high quality food and beverage. The world needs to significantly increase

food production and New Zealand can play a part in that process.

New Zealand is currently low intensity

While New Zealand’s exports of food and beverage (F&B) are significant, these account for just 2.5% of global trade in food. The country has

considerable untapped capacity to export more. New Zealand is a country the size of Italy or the United Kingdom, but with the population of

Singapore. However Italy feeds a domestic population of 60 million people and exports twice as much F&B as New Zealand.

The New Zealand Government has set a target of tripling the country’s food and beverage exports over the next 15 years. This will be achieved

through both growth of existing major sectors and the newer emerging growth stars. Maori are a large and rapidly growing part of the New Zealand

economy and F&B sector. This is discussed further in this report.

Learn from peers

There is nothing unique with the problems facing New Zealand, other countries have had very similar pressures. The experience of high relevant

global peers (e.g. Denmark, Ireland, Oregon) strongly suggests intensification will continue going forward and that strong increases in production are

possible. These peers clearly have strong lessons available for New Zealand.

This was a fundamental driver of the visit to the leading science and technology institutions in Europe i.e. to find valuable lessons, technologies, and

partnerships and engage these into the Maori economy.

1 Coriolis (2011). Food and Beverage Information Project 2011.Industry Snapshot.


2. European trip plan

2.1 My primary trip objectives:

§ Assess technology development in leading European

institutes for relevance to the needs of the Maori

economy (food and medicinal);

§ With particular emphasis on the opportunity for

immediate to medium term technology transfer;

§ Connect Iwi and Maori business with world leading

technology and innovation players; and

§ Assess and develop connections into European

markets for Maori products.

2.2 My secondary trip objectives:

§ Establish and form technology and innovation strategic

connections and alliances with Europe;

§ Explore opportunities for more strategic joint research;

and

§ Assess potential for European commercial co-

investment with Maori.

2.3 European Food Institutions visited

The following are the institutions visted by the New Zealand

delegation:

§ Institute of Food Research, Norwich, (UK);

§ Leatherhead Food Research

Institute, Surrey, (UK);

§ Wageningen University, The Netherlands;

§ German Institute of Food Technologies, Germany;

§ Swiss Federal Institute of Technology (ETH Zurich),

Switzerland; and

§ Seftal Capital Limited , Switzerland.

2.4 Members of the New Zealand delegation

Figure 1: Group photo in Germany (Max standing on the rock)

Research (Universit ies and CRI’s)

§ Dr. Catherine, Kingston, Plant & Food Research;

§ Dr. James David Morton, Lincoln University;

§ Dr. Rodrigo Bibiloni, AgResearch;

§ Dr. Susan Meade, Bimolecular Interaction Centre;

§ Ms. Lynley Browne, Auckland Uni-Services;

§ Prof. Claire Massey, Massey University;

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§ Prof. David Cameron-Smith, University of Auckland

(Liggins Institute);

§ Prof. Indrawati Oey, University of Otago;

§ Prof. John Brooks, Auckland University of Technology;

and

§ Prof. Mohammed Farid, The University of Auckland.

Business

§ Mr. Peter Lehrke New Image Group;

§ Ms. Sarah Lochrie, Comvita;

§ Dr. Shantanu Das, Goodman Fielder New Zealand;

§ Dr. Andrew Sansom, Seperex Nutritionals; and

§ Mr. Richard McColl, Ovine Automation Limited.

Maori business

§ Mr. Chris Karamea Insley, 37 Degrees South Limited.

Government

§ Dr. Max Kennedy, Ministry of Business, Innovation &

Employment; and

§ Mr. Bruce McCallum, Ministry of Business, Innovation &

Employment.


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3. New Zealand economic profile 3.1 New Zealand economy

Over the past 20 years the government has transformed New

Zealand from an agrarian economy dependent on concessionary

British market access to a more industrialized, free market economy

that can compete globally. This dynamic growth has boosted real

incomes - but left behind some at the bottom of the ladder - and

broadened and deepened the technological capabilities of the

industrial sector. Per capita income rose for ten consecutive years

until 2007 in purchasing power parity terms, but fell in 2008-09.

Debt-driven consumer spending drove robust growth in the first half

of the decade, helping fuel a large balance of payments deficit that

posed a challenge for economic managers. Inflationary pressures

caused the central bank to raise its key rate steadily from January

2004 until it was among the highest in the OECD in 2007-08;

international capital inflows attracted to the high rates further

strengthened the currency and housing market, however,

aggravating the current account deficit.

The economy fell into recession before the start of the global

financial crisis and contracted for five consecutive quarters in

2008-09. In line with global peers, the central bank cut interest

rates aggressively and the government developed fiscal stimulus

measures. The economy posted a 2% decline in 2009, but pulled out

of recession late in the year, and achieved 1.7% growth in 2010 and

2% in 2011.

Nevertheless, key trade sectors remain vulnerable to weak external

demand. The government plans to raise productiv ity growth and

develop infrastructure, while reining in government spending.

Figure 2: Dutch Green-house (cut f lowers)


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4. The Maori economy

The Maori economy is growing rapidly. Not only is it growing rapidly,

it is becoming much more diversified away from traditional primary

sector assets (agriculture, fishing, forestry).

Figure 3: Profi le of the Maori economy2

Realtive to the non-Maori economy, for the period 2001 to 2010, the

Maori economy has grown at a rate 16.4 percent compound annual

growth rate, relative to the non-Maori economy that has grown at a

meagre 3.7 percent.

2 BERL (2010)

Projecting these growth rate’s forward over the next 10 and 20

years is given in Figure 4 below.

Figure 4: Forecast relat ive GDP growth rate

The use of technology and innovation by Maori business will be

fundamental to achieving this growth through lifting the productivity

of Maori owned assets.

4.1 Current Maori Agribusiness

There is currently around 1.2 million hectares of Maori freehold land

that is either under-performing, under-utilised, or both.3

Under-performing landholdings can be described as those that are

currently developed for productive use but which are clearly, often

3 Maori Agribusiness. (March, 2011). A study of Maori Freehold Land Resource.


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markedly, under-performing compared to similar enterprise

benchmarks. There is approximately 600 000 hectares of such lands.

Under-utilized landholdings represent a complex mix of

circumstances and conditions – there is an amalgam of situations

that contribute to this land being under-utilized. The drivers of

underutilization range from the inherent physical production of the

land not being realized, constraints on the physical capacity of the

land itself through a lack of identifiable owners or management

entities. There is also an under-contribution to the financial

wellbeing of the ownership group.

There is an estimated further 600 000 hectares of such lands.


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5. Government Innovation and Trade Reform linkages

According to government, there are two ways to grow an economy4.

§ The first is to increase the quantity of inputs that go

into production – capital and labour.

§ The second is discovering and applying new ways to

produce more with the same quantity of inputs – this is

innovation. Innovation is the introduction of a new or

significantly improved product, process or method.

Innovation increases the productivity of firms and the

whole economy and creates sustainable long-term

GDP per capita growth.

New Zealand has a strong primary sector. Seventy percent of our

goods exports by value are primary products, about half of which

are unprocessed. A significant proportion of export growth in the

last eight years has come from primary products. As Maori, we need

to build on this strength by innovating and moving up the value

chain, and also take advantage of our strength in agricultural

technologies.

4 The Business Growth Agenda (August, 2011). Building Innovation.

F igure 5: Growing New Zealand’s Innovation Investment

5.1 Link to government global trade strategy

To help drive progress in the Building Export Markets work and to

measure success, the Government has committed to the following

high-level goal:

Increase the rat io of exports to GDP to 40% by 20255

This is an ambitious target. Currently our total exports of goods and

services are $61 billion, 30% of GDP1. If our exports were 40% of

GDP today, that would mean they would be $20 billion larger – which

is more than 50% larger than our current dairy exports ($12 billion)

or a further 200 knowledge intensive manufacturing or services

companies each earning $100 million per year.

5 The Business Growth Agenda (August, 2011). Global Trade


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To meet the target of 40% by 2025,

The value of New Zealand exports will need to double in real terms.

This requires real export growth on average of between 5.5% and

7.5% a year from 2016 to 2025 (depending on the path of economic

growth and using Treasury’s export growth forecasts for the next

three years – average 1.8%). New Zealand has achieved periods of

strong real export growth in the past, for example an average of 5.7%

between 1990 and 2003. But that was during a time of reasonably

high global growth and the exchange rate was, for much of the

period, lower than it is currently.

Achieving the governments 40% target will require a shift of

investment away from the production of goods and services for the

domestic economy, and towards international markets. It will require

investment to flow to opportunities in the export sector, as well as

the ability of labor and skills to shift in response to changing

demand. International experience suggests a shift of this magnitude

is possible with concerted effort and supportive macroeconomic

conditions.

Achieving this shift requires coordinated action across the six areas

of the governments Business Growth Agenda. For example, New

Zealand’s natural resource base, which is an important part of our

economic advantage, will need to be regulated to allow for

sustainable growth of the primary sectors.

The Government is also working hard to improve the ability of

capital markets to match investors and businesses so that capital

can flow to the right places. Open capital flows with the rest of the

world are vital; both as an important supplement to domestic saving,

and in ensuring our firms have strong connections to international

markets and that that their cost of financing is similar to offshore

competition.

5.2 Callaghan Innovation and Maori interests

Callaghan Innovation was established on 1 February 2013. It takes

over the current role of Industrial Research Limited, the Ministry of

Business, Innovation & Employment's business investment team and

the Auckland Food bowl.

Callaghan Innovation is named after the late Sir Paul Callaghan, who

championed the role science could play in making New Zealand an

economic success. Callaghan Innovation is one of the

Government’s key priorities to build a stronger, more competitive

economy.

Callaghan Innovation is a catalyst for the commercialization of

science, engineering, technology and design. It serves complex

needs of industry, government and research to benefit clients,

partners, and New Zealand's economy and society. As part of

Budget 2012, the Government has allocated $166 million over four

years for Callaghan Innovation ($90 million opex and $76.1 million

capex).

5.3 The challenge and opportunity for Maori business

The New Zealand Science and Innovation system has historically

been overly complex and therefore out of reach of most Maori

Trusts, Incorporations and businesses with less than 1 percent of


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annual government investment delivering meaningful and real

outcomes for Maori. Callaghan Innovation is an attempt by

government to house both the science and innovation, and trade

functions collectively under one roof.

But, it is unlikely these changes will substantively improve Maori

access to the New Zealand Science and Innovation system at least

in the medium term (3 to 5 years) given the complexity of the

system and, the inevitable resistance by key stakeholders like the

research institutes to what is fundamental reform of the New

Zealand Science and Innovation system.

Maori Innovation strategy

Accordingly, Maori must have a three-fold Innovation strategy:

§ Continue to advocate for greater access to the New

Zealand Science Innovation system, including working

alongside Government towards effective access to the

resources of Callaghan Innovation;

§ Reach out directly to the leading Technology and

Innovation Institutes of the world to find the

capabilities, technologies and funds (including private

sector) to enable Maori development;

§ Over the next 2 to 3 years develop deep and strategic

relationships with the leading global researchers,

technologists and innovators.


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6. United Kingdom – European Profile

This section provides a historic and economic profile of both the

United Kingdom and those countries visited in Europe to provide

some context to what has and will continue to shape the leading

technology and especially manufacuring advances in western

Europe.

Figure 6: New Zealand growth per capita lags behind Europe6

6 OECD Main Science and Technology Indicators 2011 Volume 2

6.1 United Kingdom

The United Kingdom has historically played a leading role in

developing parliamentary democracy and in advancing literature and

science. At its zenith in the 19th century, the British Empire

stretched over one-fourth of the earth's surface. The first half of

the 20th century saw the UK's strength seriously depleted in two

world wars and the Irish Republic's withdrawal from the union. The

second half witnessed the dismantling of the Empire and the UK

rebuilding itself into a modern and prosperous European nation. As

one of five permanent members of the UN Security Council and a

founding member of NATO and the Commonwealth, the UK pursues

a global approach to foreign policy.

The UK is also an active member of the EU, although it chose to

remain outside the Economic and Monetary Union. The Scottish

Parliament, the National Assembly for Wales, and the Northern

Ireland Assembly were established in 1999. The latter was

suspended until May 2007 due to wrangling over the peace process,

but devolution was fully completed in March 2010.

Economy - overview:

The UK, a leading trading power and f inancial center, is

the third largest economy in Europe after Germany and

France. Over the past two decades, the government has

greatly reduced publ ic ownership and contained the

growth of social welfare programs. Agriculture is

intensive, h ighly mechanized, and eff ic ient by European


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standards, producing about 60% of food needs with less

than 2% of the labor force.

6.2 Germany

As Europe's largest economy and second most populous nation

(after Russia), Germany is a key member of the continent's

economic, political, and defense organizations. European power

struggles immersed Germany in two devastating World Wars in the

first half of the 20th century and left the country occupied by the

victorious Allied powers of the US, UK, France, and the Soviet Union

in 1945. With the advent of the Cold War, two German states were

formed in 1949: the western Federal Republic of Germany (FRG) and

the eastern German Democratic Republic (GDR). The democratic

FRG embedded itself in key Western economic and security

organizations, the EC, which became the EU, and NATO, while the

Communist GDR was on the front line of the Soviet-led Warsaw

Pact.

The decline of the USSR and the end of the Cold War allowed for

German unification in 1990. Since then, Germany has expended

considerable funds to bring Eastern productivity and wages up to

Western standards.

In January 1999, Germany and 10 other EU countries introduced a

common European exchange currency, the euro. In January 2011,

Germany assumed a nonpermanent seat on the UN Security Council

for the 2011-12 term.

Economy overview:

The German economy - the f i fth largest economy in the

world in PPP terms and Europe's largest - is a leading

exporter of machinery, vehicles, chemicals , and

household equipment and benefits from a highly ski l led

labor force.

6.3 Switzerland

The Swiss Confederation was founded in 1291 as a defensive

alliance among three cantons. In succeeding years, other localities

joined the original three. The Swiss Confederation secured its

independence from the Holy Roman Empire in 1499. A constitution

of 1848, subsequently modified in 1874, replaced the confederation

with a centralized federal government. Switzerland's sovereignty and

neutrality have long been honored by the major European powers,

and the country was not involved in either of the two world wars.

The political and economic integration of Europe over the past half-

century, as well as Switzerland's role in many UN and international

organizations, has strengthened Switzerland's ties with its neighbors.

However, the country did not officially become a UN member until

2002. Switzerland remains active in many UN and international

organizations but retains a strong commitment to neutrality.

Economy overview:

Switzerland is a peaceful, prosperous, and modern market economy

with low unemployment, a highly skilled labor force, and a per capita

GDP among the highest in the world.


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Switzerland's economy benefits from a highly developed

service sector, led by f inancial services, and a

manufacturing industry that special izes in high

technology, knowledge-based production. Its economic

and pol it ical stabi l ity , transparent legal system,

exceptional infrastructure, eff ic ient capital markets, and

low corporate tax rates also make Switzerland one of the

world 's most competit ive economies.

6.4 The Netherlands

The Dutch United Provinces declared their independence from

Spain in 1579; during the 17th century, they became a leading

seafaring and commercial power, with settlements and colonies

around the world.

After a 20-year French occupation, a Kingdom of the Netherlands

was formed in 1815. In 1830 Belgium seceded and formed a

separate kingdom. The Netherlands remained neutral in World War I,

but suffered invasion and occupation by Germany in World War II. A

modern, industrialized nation, the Netherlands is also a large

exporter of agricultural products.

The country was a founding member of NATO and the EEC (now the

EU), and participated in the introduction of the euro in 1999.

Economy - overview:

The Dutch economy is the fifth-largest economy in the euro-zone

and is noted for its stable industrial relations, moderate

unemployment and inflation, a sizable trade surplus, and an

important role as a European transportation hub.

Industr ia l activ ity is predominantly in food processing,

chemicals , petroleum ref in ing, and electr ical machinery.

A highly mechanized agricultural sector employs only 2%

of the labor force but provides large surpluses for the

food-processing industry and for exports.

The Netherlands, along with 11 of its EU partners, began circulating

the euro currency on 1 January 2002. After 26 years of

uninterrupted economic growth, the Dutch economy - highly

dependent on an international financial sector and international

trade - contracted by 3.5% in 2009 as a result of the global financial

crisis. The Dutch financial sector suffered, due in part to the high

exposure of some Dutch banks to U.S. mortgage-backed securities.

In 2008, the government nationalized two banks and injected billions

of dollars of capital into other financial institutions, to prevent

further deterioration of a crucial sector.

The government also sought to boost the domestic economy by

accelerating infrastructure programs, offering corporate tax breaks

for employers to retain workers, and expanding export credit

facilities.

This section concludes the following key points:

§ Agriculture and food production are a major part of the

New Zealand economy and likely always will be;

§ Relative to well developed European economies, New

Zealand lags substantially behind these economies on a

GDP per capita basis;


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§ Western European economies have highly advanced

capabilities in food production and agriculture relative

to New Zealand.

To bridge this gap, New Zealand and Maori must find ways to lift our

productivity if we are to be competitive in global food markets. We

must innovate and introduce new technology, and do it quickly.


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7. Institute of Food Research (Norwich, London)

The Institute of Food Research (IFR) aims to fulfil a UK and

international leadership role in delivering:

§ Fundamental food & health research;

§ Applied and translational research in food & health for

societal benefit; and

§ High level training in food and health research

§ Effective networks with:

o Academic and research centres for research and

training

o Food industry for strategic research and

knowledge exchange

7.1 IFR Science

IFR is one of eight institutes that receive strategic funding from the

Biotechnology and the Biological Sciences Research Council

(BBSRC).

IFR science aims to meet the challenges of supplying safe,

nutritious food that promotes healthy ageing now and in the future.

IFR provides underpinning science for government and the food

manufacturing industry.

IFR has two strategic research programmes:

Gut Health and Food Safety, and Food and Health.

Our science strategy aims to understand the working of the

intestinal tract, how food-borne bacteria can cause human disease,

and how the chemical and physical nature of our food influences

health and can add value to the food chain. We have strategic

relationships with other BBSRC institutes, the University of East

Anglia and Imperial College, London.

7.2 Research themes

IFR Science within the strategic programmes covers a number of

research themes:

§ Food structure;

§ Food bio actives;

§ Exploitation of co-products and wastes;

§ How the GI-tract functions;

§ Microbial food safety; and

§ Bio mathematical approaches in food safety & gut.


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8. Leatherhead Institute (Surrey, London)

Leatherhead Food Research delivers integrated scientific expertise

and international regulatory advice to the global food, drink and

related industries.

8.1 Research capabilities

Food Innovation

Works with clients clients throughout the lifecycle of a product.

From design and development through to implementation and

compliance, Leatherheads integrated solutions deliver cost-

effective commercial outcomes.

§ Ingredients;

§ Pilot Plant;

§ Product Development;

§ Shelf Life;

§ Texture and Mouthfeel;

§ Troubleshooting / Crisis Management;

§ Nanotechnology;

§ Food Innovation Research; and

§ Back of Pack.

Nutr it ion

Leatherheads clinical knowledge and statistical expertise, can design

and execute human intervention studies to take a product from

concept to claim substantiation.

Food Safety

Leatherhead has a unique mix of food safety expertise, information

resources and facilities. Their "concept to market" approach and

integrated range of services delivers value to clients' businesses.

Global Food Regulat ions

Leatherhead’s language capabilities and food legislation coverage in

over 80 countries is unrivalled; supporting the global food and

beverage industry to achieve and maintain regulatory compliance.

Sensory, Consumer and Market Insight

Their trained sensory panel, extensive consumer database and

market intelligence expertise, together with investment in new

technologies such as SenseReach™, ensure that they deliver the

best solutions in sensory, consumer and market insights to their

clients.


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9. Wageningen Institute – The Netherlands

9.1 About Wageningen UR

Wageningen University, part of Wageningen UR, is the only university

in the Netherlands that specifically focuses on the theme ‘healthy

food and living environment’ by working closely together with

governments and the business community.

‘To explore the potential of nature to improve the quality of life’

That is the mission of Wageningen UR (University & Research

centre). A staff of 6,500 and 10,000 students from over 100

countries work everywhere around the world in the domain of

healthy food and living environment for governments and the

business community-at-large.

Figure 7: Wageningen global project reach

The strength of Wageningen UR lies in its ability to join the forces of

specialised research institutes and Wageningen University. It also

lies in the combined efforts of the various fields of natural and

social sciences. This union of expertise leads to scientific

breakthroughs that can quickly be put into practice and be

incorporated into education. This is the Wageningen Approach.

9.2 Key research themes

§ Adaptive agriculture;

§ Biobased economy;

§ Fishing and Aquaculture;

§ Climate and water;

§ Ecosystem governance;

§ Food and Nutrition Security;

§ Greenhouse technology;

§ Market and chain strategies; and

§ Sustainable markets.

Below are but two brief profiles of some of the capabilities at

Wageningen UR that have very real and practical application with

Maori fishing and agriculture interests.

Wageningen UR Greenhouse Horticulture

Wageningen UR Greenhouse Horticulture is an independent

international research institute that offers genuine quality and

reliability. With 120 employees, we have access to a wide range of

knowledge and expertise in all relevant fields, as well as research

facilities and demo greenhouses that are unique in the world.


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Some facts and f igures of protected cult ivat ion in The

Netherlands:

§ Glasshouse area: 10.000 ha;

§ Market-oriented production;

§ High production levels;

§ High quality;

§ Exact timeline of production;

§ Average annual turnover €45/m2=NZ$72/m2;

§ Dutch greenhouse horticulture is considered most

advanced worldwide; and

§ Energy saving and utilizing alternative resources has a

high priority.

Inst itute for Marine Resources & Ecosystem Studies

IMARES (Institute for Marine Resources and Ecosystem Studies) is

the Netherlands research institute established to provide the

scientific support that is essential for developing policies and

innovation in respect of the marine environment, fishery activities,

aquaculture and the maritime sector.

Figure 8: The team at Wageningen in the Netherlands


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10. German Institute of Food Technologies - Germany

The German Institute of Food Technologies (ger. Deutsches Institut

für Lebensmitteltechnik e.V. - DIL) is a non-governmental and self-

financing research institute supported by more than 120 members

from fields of food production, mechanical engineering, process

engineering and metrology. The DIL was founded in 1983 and is

situated in the county of Osnabrück, one of the regions with the

highest numbers of full-time employees and highest density of food

industry enterprises in Germany.

The research focus of the DIL is to develop innovative methods for

food production, quality assurance and process optimization.

Beneficiaries of new insights in food technology are small and

medium-sized enterprises. Stated as main objective is the

improvement of efficiency and increase of competitiveness of

companies from the food industry.

DIL is a leading R+D service provider for innovative processing

technologies. The institute’s unique range of expertise in material

science and engineering opens up new opportunities for advanced

technologies to be applied for a more efficient and sustainable food

production. The competitiveness of the food industry is strongly

related to the production processes applied. Apart from energy

optimization, material efficiency, and automation, all of which have a

direct impact on the margins, the need for product innovation and

safety aspects is often requesting novel processing approaches.

DIL finances itself by 90% through external funds, out of which 55%

are used to cooperate directly with members of the DIL

Briefly the Institutes focus is on:

§ Process technology;

o Pulsed Electric Field Processing

o Extrusion

o High Pressure Processing

o Ultrasound/Shockwave Technology

o Application of supercritical fluids

§ Food safety;

§ Food Physics;

§ Structure and functionality;

§ Biotechnology;

§ Robotics; and

§ Process analysis.

10.1 Knowledge for Superior Foods strategy

While at DIL we observed a number of these technologies including

new shockwave technology used to tenderise meat and High

Pressure Processing technology to extend shelf life.

Shockwave technology

It is possible to use mechanical forces for the tenderization of beef,

pork and poultry meat. The application of underwater shockwaves

has shown to be a highly efficient physical method to effect meat

tissue disintegration and accelerate meat maturation. The underlying

mechanism of action is related to energy dissipation and mechanical

stress at the boundary areas of meat and connective tissue, based

on different sound velocity and acoustic impedance.


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Shockwaves with the required energy density can be generated by

explosives, but also by underwater discharge of electrical energy.

This electro-hydraulic generation of shockwaves allows for an

energy efficient and safe application.

High Pressure Processing (extending shelf l i fe)

Given the distance from northern hemiphere markets for produce

from Maori businesses, maintaining freshness and extending shelf

life for our produce is hugely important. We observed this High

Pressure processing technology in the laboratory where pressure

application can be used for the preservation of solid and liquid food

products at ambient temperature.

The process requires only a few minutes and meets the highest

hygienic requirements, as the products can be treated in their final

package. Product examples include raw and cooked sausages,

marinated meat products, ready to eat meals, seafood as well as

fruit salads and fruit preparations.

The shelf life of marinated poultry meat, for example, can be

extended from 10 days to up to 4 weeks with this method. The

technology retains the taste and freshness of the product to the

highest possible extent.


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11. Swiss Federal Institute of Technology (ETH Zurich) - Switzerland

ETH Zurich is one of the leading international universities for

technology and the natural sciences. It is well-known for its

excellent education, ground-breaking fundamental research and for

putting its new findings directly into practice. It offers researchers

an inspiring working environment and its students a comprehensive

education.

11.1 Brief history

Founded in 1855, ETH Zurich today has some 18,000 students from

over 100 different countries, 3,800 of whom are doctoral students.

About 500 professors currently teach and conduct research in the

areas of engineering, architecture, mathematics, natural sciences,

system-oriented sciences, and management and social sciences.

ETH Zurich regularly appears at the top of international rankings as

one of the best universities in the world. 21 Nobel Laureates have

studied, taught or conducted research at ETH Zurich, underlining

the excellent reputation of the institute.

Transferring its knowledge to the private sector and society at large

is one of ETH Zurich’s primary concerns. It does this very

successfully, as borne out by the 80 new patent applications each

year and some 260 spin-off companies that emerged from the

institute between 1996 and 2012.

ETH Zurich helps to find long-term solutions to global challenges.

The focal points of its research include:

§ Energy supply;

§ Risk management;

§ Developing the cities of the future; and

§ Global food security and human health.

11.2 Paper on The Maori economy

I presented a paper on development of the Maori economy and the

critically important role of world class knowledge and new

technology as a key enabler of the Maori economy going forward.


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12. Festel Capital - Switzerland

While not officially part of the trip itinerary, I took the opportunity to

meet with a representative of Seftel Caiptal based at the ETH

campus in Zurich.

Festel Capital is an advisory and investment company focused on

the commercialisation of new technologies:

12.1 Background – Festel Capital:

§ Is an advisory and investment company (not a

consultancy) focussed on the commercialisation of

early-stage new technologies in the area of health,

nutrition, energy, materials and environment;

§ Works based on a cost/profit sharing model with co-

operation partners and not a fee-for-service model;

§ Has a good overview of the European technology

landscape in these areas;

§ Has supported the foundation of 8 biotech/nanotech

start-ups in Germany and Switzerland based on the

FOUNDING ANGELS investment model; and

§ Is a team consisting of three professionals located in

central Switzerland.

As our more and more Maori businesses embrace the technology

and innovation challenge to lift the productivity of our various

assets, just like we will need the best technology and research

partners of the world, we will also need expert commercialisation

partners and possible new venture start up funding to launch new

Maori ventures.

Festel Capital partners have expressed a very clear interest to work

with Maori businesses along this journey.


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13. New Zealand Universities, Crown Research Institute’s and local opportunities for collaboration

A very important side benefit of the European trip was to spend

time together with leaders from a number of New Zealand

Universities and Crown Research Institutes active in the Food

Innovation and technology space.

It became very clear that these institutions too have both strong

technical capabilities and have developed important technologies

and innovations to the Maori economy. It was though dissappointing

to have to travel the other side of the world to sit down and discuss

together the opportunity for collabrations together.

A series of meetings are now timetabled to happen over the next

month or so.

13.1 The University of Auckland

The University of Auckland is New Zealand’s pre-eminent

research-led institution. Of the 600 researchers in the entire New

Zealand tertiary system ranked as being of top international quality

in the Government’s latest Performance-Based Review Fund

(PBRF) report, one-third are at The University of Auckland. This

offers students unparalleled opportunities to be taught and

supervised by many of the very best academics in the country.

The University of Auckland also has the largest graduate school in

the country, the largest annual number of postgraduate research

student completions and the highest level of research income.

Graduate students are part of a large and diverse cohort in an

environment of very strong support for staff and student research.

In terms of Maori food research, the following faculties are housed

at the University of Auckland:

§ Faculty of Engineering;

§ Faculty of Science;

§ Liggins Institute; and the

§ Auckland Bioengineering Institute.

New Zealand’s premier research commercial isat ion

company

The University of Auckland has developed New Zealand’s premier

research commercialisation company, Auckland UniServices Ltd. In

just twenty years UniServices has grown to produce an income of

over $NZ100 million per annum, far surpassing any similar operation

in New Zealand and most of those in Australia. This income derives

from nationally and internationally competitive sources and from the

commercialisation of intellectual property developed by staff and

students at the University.

13.2 Massey University

Massey University was formally constituted on the merger of two

prior institutions - Massey Agricultural College, focussed on land-

based industries; and Palmerston North University College,

established to provide New Zealand-wide distance education.


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Some of the relevant academic and research specialisation’s

relevant to Maori and food innovation are clustered as follows:

§ Agriculture, Veterinary and Life Sciences - including

veterinary, agricultural and horticultural sciences,

biomedical sciences, molecular biosciences, animal

sciences;

§ Land, Water and the Environment - including soil and

plant sciences, ecology and conservation,

environmental planning and management, sustainable

development;

§ Industrial Innovation through Engineering and

Technology - including food technology, biotechnology,

product development, material sciences, computer

science, information sciences and engineering,

telecommunications;

§ Business and Enterprise - including management,

accountancy, marketing, economics and finance,

enterprise development, aviation management;

§ Māori Development - including te reo Māori, history

and heritage, Māori education, visual arts, health, and

whanau development;

The Riddett Inst itute

The Riddet Institute is a national Centre of Research Excellence

focusing on food structures and digestive physiology.

The goal of the Institute is to generate essential underpinning

knowledge that will provide the base of tomorrow's innovations in

advanced foods. Research falls into three broad areas:

§ Future Foods;

§ Functional Foods and Ingredients; and

§ Personalised or "I" Foods.

13.3 Lincoln University

Lincoln is New Zealand’s third oldest university. Founded in 1878 as

a School of Agriculture, the organisation was linked to Canterbury

College, welcoming its first intake of students in 1880. Today, no

other university in New Zealand has a higher rate of research dollars

per full-time member of academic staff.


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Lincoln University is home to:

§ The Agribusiness and Economics Research Unit

(AERU),

§ The Centre for Soil and Environmental Quality and the

Isaac Centre for Nature Conservation; and

§ Home to the National Centre for Advanced Bio-

Protection Technologies, one of only seven

Government-sponsored Centres of Research

Excellence in New Zealand.

13.4 Otago University

Food Science at Otago University

The work of food scientists at Otago has an increasing importance

in todays modern industrialised world. Whilst distribution systems

and processing techniques continue to improve, consumers are

demanding convenience products that are minimally processed,

palatable and available throughout the year.

The aim of the University of Otago's Food Science Department is to

prepare students for creative, challenging, diverse and rewarding

careers in the food industry and to produce the next generation of

critical thinkers, industry leaders and food science researchers.

They are charged with the job of processing, preserving and

distributing food of high quality, which is both safe and tasty to eat.

They use their skills to develop new, improved products or devise

more economical production processes. The challenge in the future

is to improve the nutritional quality of food, conserve the world's

food supply and reduce environmental impact.

13.5 Plant and Food Research

Plant & Food Research is a New Zealand-based science company

providing research and development that adds value to fruit,

vegetable, crop and food products.

With over 900 people based at sites across New Zealand, as well as

in the USA and Australia, at the heart of Plant & Food Research is a

goal to underpin the growth of plant and marine-based industry

through the successful application and commercialisation of

research-based innovation.

It;’s science supports the sustainable production of high quality

produce that earns a premium in international markets, as well as

driving the design and development of new and novel functional

foods that offer benefits to human health and wellbeing.

Five Research Portfol io’s:

§ Breeding and Genomics

o Building knowledge of key traits at the molecular

level to inform the development of new elite

cultivars.

§ Bioprotection

o Effective control of pest and disease to protect

export market access.

§ Sustaianble production

o Systems that increase efficiency and retain quality

across the supply chain.


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§ Food Innovation

o Identifying intrinsic health benefits in natural

produce to develop new foods and beverages

§ Seafood technologies

o Optimising the value and quality of seafood and

aquaculture.

13.6 AgResearch

Purpose

AgResearch’s purpose is to enhance the value, productivity and

profitability of New Zealand’s pastoral, agri-food and agri-

technology sector value chains to contribute to economic growth

and beneficial environmental and social outcomes for New Zealand.

Outcomes

AgResearch will fulfil its purpose through the provision of research

and transfer of technology and knowledge in partnership with key

stakeholders, including industry, government and Māori, to:

§ increase the value of these industry sectors to the

New Zealand economy through the development of

high-value pastoral-based products and production

systems that meet current and future global market

needs

§ position New Zealand as a global leader in the

development of environmentally sustainable, safe and

ethical pastoral production systems and products

§ ensure that New Zealand’s pastoral sector is able to

protect, maintain and grow its global market access

§ increase the capacity of rural communities and

enterprises to adapt to changing farming conditions in

ways that balance economic, environment, social and

cultural imperatives.

Scope of Operation

To achieve these outcomes, AgResearch is the lead CRI in the

following areas:

§ pasture-based animal production systems

§ new pasture plant varieties

§ agriculture-derived greenhouse gas mitigation and

pastoral climate change adaptation

§ agri-food and bio-based products and agri-

technologies

§ integrated social and biophysical research to support

pastoral sector development.

AgResearch work’s with other research providers and end-users to

contribute to the development of the following areas:

§ biosecurity, land, soil and freshwater management

§ climate change adaptation and mitigation

§ food and beverage sector (including foods for human

nutrition and health, food technologies and food safety).


14. Conclusions and Opportunities for Maori business enabled by European Food Innovation and Technologies

14.1 Key Conclusions and Opportunties for Maori business:

• War in the early to mid 1900’s has left Western Europe with incredible industrial technology and manufacturing capabilities where today

many of these countries have engeneered their entire economies off the back of these capabilities. And, they haven’t stopped where

many of the institutes visited continue to be engaged by the leading food companies of the world to drive their new product development

in food.

• As New Zealand and Maori, in relative terms our food production and new product development significantly lag behind that of our

Western European counterparts (and competitors).

• The opportunity is ripe for Maori food businesses to catch up quickly by finding and introducing especially European technologies and

innovations into our businesses and not waste time and money re-inventing the wheel. The introduction of these technologies will enable

our businesses to fast track into the growth markets of the emerging economies like China, India and South America.

14.2 Specific trip outcomes:

From the European trip, the following clear outcomes have been derived and generated:

• A database of leading New Zealand food technology institutes and their capabilities:

• A database of leading European food technology institutes and their capabilitiess;

• Specific individual contacts (email, phone contacts etc) within both New Zealand and European Institutes;

• A strong sense for which Institutions have the particular key capabilities relevant to Maori food businesses;

• A project list and priorities that can bring together leading New Zealand and European capabilities with the specific interests of Maori

businesses;

• A strong sense on how the New zealand Government reforms on International Trade and Innovation can align directly to the interests of

Maori business;

• A schedule of New zealand and European funding streams for possible co-investment in Maori food business projects.


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15. Now then.., how to make this all happen (and quickly)

15.1 Phase 1: Information sharing across Maori business

• Provide Initail Impressions Trip Report to all iwi Chairs, Maori Business leaders, Trust and Incorporation Chair’s (done);

• Provide Detailed Trip report iwi Chairs, Maori Business leaders, Trust and Incorporation Chair’s (done, this report) ;

• Gather and collate feedback from iwi and Maori business (by end of March, 2013);

• Meet with New Zealand Universities and Crown Research Institutes (CRI’s) involved in the tour to identify possible collaborations with

Maori busniesses (in food innovation by end of April, 2013).

15.2 Phase 2: Individual Project Scoping

• From Phase 1, identify key Maori food innovation projects and possible Maori business participants for each project;

• Scope each project with clear and measurable market drivers and signals;

• Identify technology and innovation gaps for each project;

• Identify across New zealand and European Food Technology Institutes whether existing technology exists;

o Where existing technology exists, develop a technology transfer plan to bring these technologies into Maori businesses;

o Work with Maori businesses to successfully transfer the technologies into their businesses.

• Where existing technologies do not exist (New zealand and across Europe), work with Maori businesses to:

o Scope individual research projects;

o Find other Maori businesses interested in the same projects and agree partnership arrangements;

o Find best technology providers to deliver the research project;

o Engage technology providers to undertake research. Critically this will include setting very clear IP rules and protocols best

protecting the interests of Maori business participants;

o Scope and manage technology providers to deliver against the agreed research outcomes;

o Work with and assist Maori businesses to successfully commercialise the new research outcomes.

He whakatauki

European Food Innovation and Technology Report 2013

Technology

Transcript of European Food Innovation and Technology Report 2013