1. Growing New Zealand’s Global advantage in Food, Fibre and Agribusiness

2. Guiding principles  Coherence – building critical mass around coherent research programmes  Leadership – collaborative groupings providing a bigger voice  Cross fertilization – multi-disciplinary research  Knowledge diffusion – from fundamental to applied/ line of site is key  Translation – relationships with end-users on multiple levels.

3. Overview >New Zealand’s agrifood innovation challenge >Touch on functional foods >National vision, mission and strategy >Food & health platforms >Riddet innovation >Other initiatives

4. Why innovate? “Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy” 1 1 The Theory of Economic Development, Harvard University Press

5. Agri-foods place in New Zealand’s economy (2011)  On farm etc directly accounts for 5% of GDP.  Processing accounts for 4% of GDP.  Downstream activities also make important contributions to GDP.  10.4% of total New Zealand employment.  Over half of manufacturing. Slide courtesy of A Call To Arms “A contribution to a New Zealand agrifood strategy.”

6. Agri-foods Contribution to Exports  Agri-foods have been New Zealand’s largest single export sector for the last 100 years.  The sector now accounts for:  Annual exports of NZ$24 billion.  About two-thirds of New Zealand’s merchandise export earnings.  About 2.5% of global trade in foods and beverages. Slide courtesy of A Call To Arms, a contribution to a New Zealand agrifood strategy

7. NZ Government’s Economic Growth Agenda – Agri-foods

8. Some of the opportunities  Emerging economies – particularly China, Indonesia, India, Brazil, and Turkey.  Role of food in health.  Potential to be better at meeting consumer needs.  Processed Foods.  Māori economy.  Potential to capture more value from the value chain. Slide courtesy of A Call To Arms “A contribution to a New Zealand agrifood strategy.”

9. Some of the weaknesses  Lack of intimate knowledge of Consumer needs particularly in emerging markets.  Fragmentation within and between sectors and Government, and along the value chain.  Low levels of investment in R&D by industry.  Lack of access to capital.  Low level of overseas direct investment.  Need for more capability. Slide courtesy of A Call To Arms, a contribution to a New Zealand agrifood strategy.

10. Understanding consumers  We must develop new products to meet changing consumer needs in both emerging and traditional markets, particularly the drive towards health and wellness through diet, and the desire for “fresh” characteristics of food.  Recent improved market access to China and South East Asia has sharply increased prospects for New Zealand food exports.

11. Major shift to Functional Foods  It is being increasingly recognised that many foods have a health value beyond their nutritional contribution:  Such foods are termed “functional foods” and their importance has long been implicitly recognised in folklore and in cultural values of many societies.  The science behind these effects is only now becoming understood  Global functional foods and nutraceuticals business estimated to be grow to US$200 billion by 2016.

12. Continuum of Foods through to Pharma  Pharmaceutical  Dietarysupplements  Nutraceuticals  Functional Foods  Fortified Foods  Nutritionallyenhanced Foods  Conventional Foods (Rowan et al 2005)

13. Global challenges to accelerating growth  Volatile economic factors.  Changing consumer demands.  Substantial global change.  Rising and volatile energy costs.  Need to reduce atmospheric, river and ocean pollution.  Significant capital investment. Slide courtesy of A Call To Arms, a contribution to a New Zealand agrifood strategy

14. Our main opportunity is to create critical mass working across New Zealand’s science and business ecosystem  Building upon the strengths of New Zealand’s agrifood innovation;  And upon New Zealand’s processing, supply chain and international marketing expertise;  Adding world-class expertise in food science, human nutrition and health.

15.  Centre of Research Excellence (CoRE) for foods and nutrition, funded by New Zealand government and supported by industry  Internationally renowned and well-connected  A collaborative partnership between academics/ researchers from: Riddet Institute – A Partnership

16. Auckland (University of Auckland) Bringing together New Zealand’s best talent in food and nutritional sciences Wellington (Victoria University, MacDiarmid Institute) Palmerston North (Massey University, Plant & Food, AgResearch, Fonterra) Dunedin (University of Otago) Christchurch (Plant and Food, University of Canterbury) Hamilton (AgResearch) Connected in New Zealand

17. 1.World class fundamental and strategic research 2.Developing human capital (tomorrow’s leaders) 3.Transferring new knowledge to stakeholders 4.Partnering with industry (preferred partnerships) to identify and develop IP. Riddet Institute Objectives:

18. What Riddet offers:  A platform of true research excellence  A platform of national collaboration  A platform of cross-disciplinary collaboration  Superb international science linkages  A track record of working as partners with industry.

19. Research Platforms Food Materials & Structures Modelling and Engineering Gastro- Intestinal Biology Innovative Food Solutions Chemistry, Physics, Mathematics, Engineering, Biology, Materials Science, Nanotechnology, Digestive Physiology Nutrition, Microbial Ecology

20. Strong basic science Strong industry linkages (with Govt. Support) Novel products in market Riddet Institute Industry BIOLYSINE ™ 20 Riddet Innovation

22. Research Programmes (non-CoRE) Functional Foods and Novel Ingredients Weight loss foods/Satiety Food formulation and sensory analysis Marine omega-3 Probiotics Antioxidants Nanoencapsulation systems Food Protein structures and Interactions Bioprotection and delivery of bioactives Health promoting properties of kiwifruit Ingredients interactions and food matrix structures Protein Hydrolysates (bioactive peptides)

23.  Market analysis, particularly in Asia and South America, and eventually in India, and through understanding of consumers and their needs.  Directly transacting with end users.  Targeting affluent markets, particularly the places where affluent people shop.  New science and technologies, particularly in the processing of foods and beverages and in the health and wellness arena.  Increased investment into the development of smart ingredients. Slide courtesy of A Call To Arms “A contribution to a New Zealand agrifood strategy.” Transformational Strategies

24. “New Zealand is recognized and supported by key industries and investors around the world as a premier centre for food and beverage product and process innovation.”.

25. “In meeting global demand, New Zealand will increasingly be recognized by consumers as an innovative and productive source of natural products that contribute to their health and well-being, whilst protecting the pristine environment they are derived from.”.

26. A key enabler – increased investment in RD&E Build stronger technology platforms/centres of excellence in:  consumer insights;  supply chain;  human health and wellness;  food functionality, structure, digestibility, texture and ‘fresh’;  processed foods;  on-farm systems;  sustainability;  renewable forms of energy.

27. Key success factors  Willingness of businesses to participate and collaborate  Selecting and focussing on the right niche opportunities where New Zealand is unique and has a USCA  “Cooperatition” i.e. compete as usual but collaborate and focus together on much larger new opportunities which cannot be taken on alone due to technical and market risk – create scale and integrated approaches along the value chain  Financial resources.

28. Thank you.