NZMP, the global dairy ingredients brand of Fonterra, has refreshed its market-leading risk and commercial solutions. During volatile and uncertain market conditions, these solutions help customers gain confidence through improved price and supply certainty.
Eric Morrison, Head of Risk & Commercial Solutions at NZMP says the refreshed solutions are designed to remove complexity and reduce supply risk for NZMP’s dairy ingredients which are sold in more than 130 countries and are at the heart of some of the world’s most famous food and nutrition brands.
“External and often difficult to predict factors such as weather events, supply chain disruptions, and geopolitical events can impact supply, demand and pricing. We wanted to provide our broad customer base with options to reduce complexity and take back some control. Over a number of years, and with plenty of customer feedback, we have developed a range of market-leading solutions. Each is intended to reduce the distraction and noise which volatile markets can bring, and that’s what we’re hearing. Our solutions are supporting many of our customers achieve their priorities and focus on what they do best.”
NZMP recently showcased its four hero Risk and Commercial solutions at Gulfood in Dubai and Food Ingredients China (FIC) in Shanghai receiving plenty of interest and positive feedback from the industry.
Mr.Morrison explains, “At these world-leading events we received a lot of interest in our refreshed NZMP solutions. The continued market volatility and uncertainty is driving a growing awareness of the potential benefits of price and supply risk management and we are excited to be able to provide options to our customers to help support their business operations and planning.”
Mr.Morrison says NZMP’s local sales teams work closely with customers to understand their objectives and how NZMP’s solutions can best support them “We also have a specialised Risk and Commercial Solutions team who are based out of Singapore, the Netherlands and New Zealand and who are available to discuss options with customers.
“A good example is a customer’s leading consumer brand in the repack milk powder segment, operating in the Middle East and Africa market. The repack market in general is price sensitive and significant increases in commodity prices can put pressure on margins and market share. They’ve also experienced challenging supply conditions on occasion due to adverse weather events in supply regions. Our NZMP PriceLock solution for a 12-month period allowed them to lock in their supply and eliminate volatility from their milk powder pricing,” he explains.
“Another customer is a well-established nutrition company in the South and East Asia region. They were seeking to secure supply for the next nine months while also protecting their margins in the event ingredient prices increased significantly. They chose our NZMP PriceCollar solution which allowed them to secure their ingredient supply with the pricing linked to a market index but constrained to an agreed range, providing the customer comfort that their ingredient pricing could only increase to a certain pre-agreed limit.”