September 25, 2002

Craig Norgate, Chief Executive Officer of Fonterra, today welcomed the launch of dairying biotechnology joint venture, BoviQuest, saying its work will take guesswork out of dairy breeding.

BoviQuest is a joint venture of Fonterra owned ViaLactia Biosciences (NZ) Ltd. and herd improvement company, Livestock Improvement charged with unlocking the secrets of the bovine genome.

“Fonterra has made a significant investment in biotechnology through this joint venture because we believe that’s where the future lies,” said Mr Norgate.

“New Zealand has always led the world in the progressive improvement of dairy cows – to the point where we are the best grass-based producers of milk in the world.

“Until now the rate of improvement has depended on traditional breeding systems, and that takes time. Biotechnology gives us a key to unlocking the secret of the bovine genome, and means we will be able to speed up conventional breeding for specific traits and produce the products our markets demand – quicker than we ever could with earlier methods.

“Gene discoveries won’t just impact on a cow’s ability to produce milk and animal health issues like fertility and resistance to disease; they will also cover milk composition that will lead to added-value milk products.

“BoviQuest has captured the knowledge wave for dairying,” said Mr Norgate.