Business North December 2022

50 | PRODUCTION Danone New Zealand: Auckland Richard Loader Danone answers US emergency call Steve Donnelly: “While a number of New Zealand companies tried to supply product, we were the only one that actually achieved approval to supply.” When the United States Government put out the emergency call for infant milk formula in June this year, Danone’s New Zealand team responded with 500 tonnes of high-quality formula processed and packed at its Auckland facilities, using base powder supplied from its spray-drying facility in Balclutha. The emergency resulted from a domestic shortage of infant milk formula caused by the safety-related closure of the United States’ largest formula manufacturing plant. President Biden authorised the US Defence Department to use commercial aircraft to fly formula supplies that met federal standards from overseas to the United States, in what the White House called ‘Operation Fly Formula’. Danone’s New Zealand based Make Director Steve Donnelly says when the call for help went out around the world, Danone’s Auckland facility responded, putting product into the US for the first time ever. “Typically, US is open to US suppliers only. While a number of New Zealand companies tried to supply product, we were the only one that actually achieved approval to supply. “For child nutrition products, Danone has a small business in the US and with feet on the ground, we engaged much more easily with the US FDA (Food and Drug Administration) and the White House to respond to the crisis. It was wonderful to be able to respond so quickly to the US. “We were dealing directly with the White House on approvals and were seen as shining light as to how we could respond to that emergency — not only here in New Zealand, but Danone as a whole. “Some product was also supplied out of Europe, which is one of the benefits of being a global company.” Steve says New Zealand’s very high food safety standards, particularly in the area of infant milk formula, made it an easy choice for the US authorities, when granting approval. “As a result of the emergency, the US can see they need contingency to complement their local manufacturers, and we’re in talks on how we can continue the support on an on-going basis.” Global food giant Danone increased production of infant food with the purchase of two dairy processing businesses in 2014; a spray drying facility in Balclutha and the infant-formula processing/canning facilities located in the Auckland Airport Industrial Estate, with the two complementary facilities in Auckland conveniently over the road from each other. “The majority of the base powder processed at our Auckland facility comes from “The upgrade also doubled our capacity. Dependent upon the format and product, we can now produce north of 40,000 tonnes of infant formula annually.” the Balclutha plant on a daily basis, with other ingredients sourced from around the world,” explains Steve. “In 2016/17 we put in all new equipment into the can-filling and blending facility, including a state-of-the-art gravity fed blending system, with two new fillers and brought the plant up to new regulatory standards that were introduced at the time.” Danone’s gravity fed blending system entails the base powder to be transported in 25kg bags in a lift up to a five-storey purpose-built building. The powder then flows by gravity down through the blender and other key processes, removing any impurities, and finally into the ground floor filling machine, and into the cans, ready for market. Steve says that in a more typical filling and blending facility the powder is pumped around the plant through vacuum transport systems and blowers. The gravity system enables considerable energy savings, commensurate with Danone’s environmental and sustainability objectives. “The upgrade also doubled our capacity. Dependent upon the format and product, we can now produce north of 40,000 tonnes of infant formula annually. More recently in 2020/21, as an adjunct to the gravity fed filling plant, we built a brand-new laboratory testing centre, enabling us to test every attribute of the infant formula that we produce.” Starkly contrasting with the industrial focused can-forming plant where sheets of tin are cut, bent and welded, the can-filling and blending plant has the appearance of a highly hygienic hospital environment, where the production of high-quality infant formula is paramount. “We have three hygiene areas; low-care, medium-care and high-care. The high-care area is where the ingredients are exposed and require the same environmental conditions as a surgical theatre in a hospital. “This is all because we’re feeding infants and the tolerance for exposure to microbes is very low. On the line that is produced, we attach QR codes and date coding. Some of our markets, including China, can scan the QR Proud to support Danone with logistics services TEL 64-9-256 0861 www.burnard.co.nz

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