Yeast bacteria can be programmed to produce milk proteins. I think that this method of milk production will become cheaper than production through cows (because we have cut out the middle man, the cow, from the process - energy is not wasted on a cow living, breathing … ). Roughly one third of NZs economy is dairy products. If this artificial milk undercuts cow-produced milk from NZ our economy will suffer.
So, the way I see it, the NZ dairy industry has two options (as continuing with the status quo will most likely lead to an economic crisis in NZ). Either adopt synthetic milk production, or discredit it.
Using their existing facilities for processing bovine milk, Fonterra could pivot their business model and start processing and producing synthetic milk (which is my preferred option). But, I cannot foresee this happening as Fonterra is a co-op of dairy farmers, who I think will be unwilling to just give up dairy farming. (Instead they could farm whatever raw ingredients are required for the yeast to grow.)
Fonterra could also do a big smear campaign against synthetic milk, branding it as unnatural and a genetically modified monstrosity. Unfortunately, I do not think this strategy will work particularly well because Fonterra’s own processes of producing some of their products requires the genetic modification bacteria (see cheese making).
Also, the government could help the situation by; protecting our dairy industry with subsidies (which I dislike as it would be inefficient), or by urging/forcing Fonterra to change.
Either way, I do not think that there is future in dairy farming. And NZ should be divesting as soon as possible (not to mention for other environmental reasons for divesting from dairy).