What is DHA?
Connecting Healthy Food to Healthy Living
• Docosahexaenoic acid (DHA) is a long-chain
polyunsaturated fatty acid in the omega-3 family of
fatty acids
• An essential component of all cells in the body,
especially brain and neural tissue
A Presentation to the 2014 OIA Conference &
55th Annual Meeting
April 11, 2014
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Partners to take a concept to Market
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EFI (FSI)
feed nutrition
dairy farmers
segregated transportation logistics (DFO)
testing/verification logistics
processor(s)/distributors
retailers
promotion
financial support
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DHA-Enhanced Milk &
Dairy Products Made from this Milk
• Approved by Health Canada (Food and Nutrition) on
December 22, 2003 … a novel food with no safety or
nutritional concerns identified
• No objections to the sale of milk containing enhanced
amounts of DHA and of products made from this milk
• Labels must carry a statement of the amount of DHA
per serving (e.g. 0.016 g per 250 ml serving)
• Licensee responsible for statutory and regulatory
requirements
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Agreements
Where it started
• Processors under contract with EFI to use patent
rights
• DFO has an agreement with EFI to recruit producers
and manage all logistics … testing, transportation,
etc.
• Feed companies under contract with EFI to provide
DHA-enhanced ration
• DDPIP – domestic dairy product innovation program
provides price reductions and crystallization of
market into Plant Supply Quota (PSQ)
• Research trials at the University of Guelph indicated
higher levels of OMEGA-3 fatty acids
• A farm trial began at one farm in 2002 – determining
how to get enough protein, energy, fiber and minerals
into the diet and have higher levels of DHA
• Recruitment drive in 2002 to find farmers interested
in producing DHA enhanced raw milk
• Fluid milk (Dairy Oh) launched in April 2004
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DHA Enhanced Dairy Products
Dairy Farmers
• Fluid milk – started in 2004, second processor started
in 2008
• Yogurt – 2005 - 2008
• Ice Cream – 2005 - 2008
• Cheese - started in 2005, second processor started
in 2008
• Cheese strings launched in 2010
• Cheese strings and fluid milks the only DHA
enhanced products currently being manufactured
• Both a feed offset and premium paid
• Feed offset is based on theoretical model cost
differential between a DHA and conventional rations
• Current feed differential is $4.70/hl
• Current premium is $4.00/hl
• 6 to 12 weeks of transition feeding to reach 0.3%
DHA ….. transition costs covered by farmers
• Exempt from SNF to BF ratio as BF can be
depressed during transition period
• 47 DHA shippers shipping 55 million Liters/yr.
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Producer payment criteria
Processing
• Started with active and standby shippers …. standby
shippers had difficulty recovering transition costs as
only feed costs were paid ….standby dropped
• Situations where orders were scaled back after
demand was known and some producers did not
recover costs (last on/first off) .... an issue of filling
the pipeline vs consumption
• Guarantee of six months of program payment once
0.3% criteria met
• Hoof health a concern in some herds but not
dissimilar to conventional herds
• Market originally estimated but unknown
• AAC grant to assist with market tests
• DFO rebates feed offset and premium for five years
as a means helping launch the new initiative
• Primary issues associated with daily milk production
and small batch runs ….. the more product
processed the less restrictive the logistics
• Fluid sales affected when there is deep retail
discounting
• Cheese strings growing incrementally
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Feed & Nutrition
Transportation
• Opportunity originally discussed with feed companies
by FSI (EFI)
• Floradale Feed Mill developed feed delivery process
for EFI … New Life Mills added for eastern Ontario
followed by McEwen Feed Mill
• Contractual rights a concern to non participating feed
companies due to loss of previous customers
• All farms in Ontario (22 south-west, 25 eastern) and
farms selected to maximize transportation efficiency
• 90% of milk processed in Victoriaville, PQ
• 10% in Ontario in the GTA
• Farms originally selected in close proximity to the
processing plant requesting the milk
• As processing logistics change for efficiency, can
result in transportation inefficiencies
• no new products planned at this time
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The road ahead?
• Products have a niche foot hold (2.6% of provincial
milk supply)
• There is promising science showing strong
association with OMEGA-3 benefits when consumed
with dairy products
• Excessive Omega 6 interferes with the benefits of
Omega 3 (evolved at a 1:1 ratio, current ~16:1)
• Understanding of the benefits of DHA (Omega 3)
improving but not widely understood
• Saturated fats a benefit ….. Sweden’s Food Guide
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