'Innovation key to reviving Korea's dairy industry'

The Korea Times

The Korea Times

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Sat, September 23, 2023 | 13:33

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'Innovation key to reviving Korea's dairy industry'

Posted : 2017-11-08 20:30

Updated : 2017-11-09 10:52

Suzanne McCloskey, founder of Fair Oaks Farm and fairlife, speaks during an interview with The Korea Times at the Four Seasons Hotel in Seoul, Tuesday. Courtesy of fairlife

Adding value, storytelling will drive milk consumption growth

By Lee Hyo-sik

Korea should work harder to introduce innovative, value-added dairy products and deliver effective messages about the benefits of drinking milk if it wants to revive its struggling dairy industry, according to the founder of one of the largest dairy farms in the United States.

Suzanne McCloskey, founder of Fair Oaks Farm and fairlife, said dairy farms here need to build stories behind their brands and bring in other elements that consumers are looking for.

McCloskey stressed she and other dairy farmers are willing to share their knowhow and expertise to help their Korean counterparts bolster productivity, reduce their carbon footprints and develop innovative, nutritious products.

"Looking back on what the United States went through in the past, we chose to break through the slump by applying innovation to fluid milk," she said. "I would advise the Korean dairy industry to do the same. Since Korea can offer high-quality milk, the next step would be to deliver the message that the goodness of milk is unparalleled to consumers, and figure out effective ways to communicate with consumers and understand their needs."

McCloskey came to Korea to attend the U.S. Dairy Business & Innovation Conference on Nov. 7 to 8, organized by the U.S. Dairy Export Council. The event is designed to promote the exports of U.S. dairy products to Asia's fourth-largest economy.

In 1999, McCloskey and her husband Mike founded Fair Oaks Farm in the U.S. state of Indiana, which currently milks more than 15,000 cows. She also created Select Milk Producers in New Mexico, the nation's sixth largest dairy cooperative.

Fair Oaks Farm is also engaged in environmentally-friendly and sustainable farming practices by reducing cows' methane emissions, and powering all its buildings and fueling 42 tractors using the manure of 15,000 cows.

They also established a dairy company jointly with Coca-Cola, fairlife, which has been offering a high protein, low sugar, lactose free milk and a range of processed dairy products.

"In the United States, the consumption of fluid milk has declined but dairy farmers produce more milk in line with the growing demand for cheese, yogurt and other processed products," she said. "U.S. producers focus on providing a wide range of options, including lactose-free beverages, or goods that contain pro-biotic fibers, vitamins and minerals and other substances that have a meaningful impact in the everyday lives of consumers."

She said fairlife has been at the center of this ongoing turnaround of the American dairy industry by offering innovative, appealing products ahead of its competitors.

"We have made great efforts to bring technology and innovation to our dairy business. I believe Korean consumers are ready for innovative products so dairy companies here should do more to offer goods and services that consumers seek," McCloskey said.

But Korean consumers have to wait a few more years before acquiring a taste of fairlife products, according to the former professional potter, who said her company will partner with local dairy farms when it makes inroad into Korea.

"We are currently focusing on the U.S. market. But at the same time, we are working to expand globally in partnership with Coca Cola, which has a worldwide distribution network," she said. "When we enter Korea, we will find local farms that produce great quality milk and meet our standards. Using locally-produced milk, we will offer a range of dairy products to Korean consumers."

Korea's milk consumption has been declining over the years as people increasingly turn to soy milk and other alternatives. The country's falling birthrate has not helped boost milk consumption either.

To cope with milk oversupply, domestic dairy firms have tried to produce and market cheese, yogurt and other processed goods, but are unable to make a dent because many consumers opt to choose imports from the U.S., Australia and others countries.

leehs@ktimes.com