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Speaker 1: So Fonterra is expanding a high protein hub seventy five

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Speaker 1: million dollar expansion to its Studholm factory. This is South Canterbury.

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Speaker 1: Of course, high proteins all about sports nutrition, medical products,

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Speaker 1: that sort of thing. The market's expected to grow ten billion,

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Speaker 1: that's US in the next four years. Are the CEO,

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Speaker 1: of course, is Miles Hurrales with us Morning to.

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Speaker 2: You, Good morning, Mike.

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Speaker 1: Is this niche and always niche or it's niche going

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Speaker 1: mainstream very.

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Speaker 2: Much the letter niche going mainstream. Yeah, people are starting

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Speaker 2: to use more of these products that used to be

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Speaker 2: just sort of the bodybuilders of the world, but it

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Speaker 2: is going mainstream and you and I might have a

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Speaker 2: drink or a protein bard before after your exercise.

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Speaker 1: He says, Okay, how competitives the space globally?

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Speaker 2: Oh it is. I mean Northern Hemisphere are the sort

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Speaker 2: of the key players and not not so much down here.

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Speaker 2: But Northern Hemisphere also got some intellectual property in this

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Speaker 2: place as well. But we think has is unique and

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Speaker 2: of course we've got a good strong customer partnerships both

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Speaker 2: in US and North America. Japan. Career are the key

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Speaker 2: markets that we're targeting.

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Speaker 1: Does the new Zealand thing count for anything in this

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Speaker 1: area or not.

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Speaker 2: Oh not so much in this area. That is certainly

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Speaker 2: the New Zealand providence sort of story resonates in a

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Speaker 2: lot of our product categories, mainly products that are consuming

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Speaker 2: our cheese and the like. But yeah, these products not

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Speaker 2: so much. It's an ingredient that goes into sort of

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Speaker 2: a high high value esports nutrition or medical nutrition, so

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Speaker 2: not not as much as others.

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Speaker 1: And that's where you're at. So you provide the ingredient.

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Speaker 1: You're not in the business of making the Fontierra protein bar.

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Speaker 2: Correct, it's it's the ingredient, but the intellectual property that

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Speaker 2: goes with in years of R and D have gone

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Speaker 2: into into these proteins, and so you're not. It's an

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Speaker 2: oportunity for us to expand our foot front here in

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Speaker 2: New Zealand.

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Speaker 1: I know what you're going to say, but how much

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Speaker 1: of this is psychobabble and how much of it's actual

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Speaker 1: medical and.

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Speaker 2: Real real I mean, you get into the you get

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Speaker 2: into into those power brands in North America, you don't.

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Speaker 2: You don't get the approval from from the authorities unless

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Speaker 2: you've done the clinical research behind it. So now hundred

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Speaker 2: percent of is real and as I say, we work

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Speaker 2: collectively with where their partners up there to make sure

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Speaker 2: that the products that we provided them fit their bill.

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Speaker 1: And hume of the margin at the end of the

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Speaker 1: market's quite good.

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Speaker 2: It is good and at lines were sort of the

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Speaker 2: decisions we made recently around divesting out of our consumer

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Speaker 2: business because we believe that the future is in this

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Speaker 2: B to B space, the high value proteins. And you know,

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Speaker 2: for us to throw seventy five million dollars at a

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Speaker 2: plant that was sort of aging almost at the end

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Speaker 2: of an economic life and given that of new Lisa

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Speaker 2: and I, it's great for us.

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Speaker 1: Yeah, exactly. While I've got you. Haven't talked to you

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Speaker 1: since the last auction? Are you saving the country single handedly?

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Speaker 2: Here?

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Speaker 1: Things look all right now.

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Speaker 2: I think things look okay, although you know there are

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Speaker 2: some in your colleague Jamie mckaye is still sing we've

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Speaker 2: been a bit conservative. So the market has two and

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Speaker 2: for us, which is great, but it is still early days.

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Speaker 2: The world's not in the great shape of the ears

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Speaker 2: we all know, so we just keeping keeping a power

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Speaker 2: dray for a little bit.

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Speaker 1: Do you want me to have a word with Jamie?

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Speaker 2: He does he is his way. You know how he works.

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Speaker 1: Yeah, yes, good Miles. Nice to ketch up breach out

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Speaker 1: pretty much, Miles Harrel. I know Jamie. Anyone knows Jamie.

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Speaker 1: I know Jamie. For more from the Mic Asking Breakfast,

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Speaker 1: listen live to news talks there'd be from sixteen weekdays,

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