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New Zealand scientists have bred cows that can produce low-fat milk.
In a world first, Fonterra scientists are breeding cows that produce milk that is also high in omega3 oils, claimed to improve brain power and contains polyunsaturated fat.
Saturated fats found in normal milk are linked to increased risk of heart disease.
The cows, which have a particular genetic mutation, were bred from a single female discovered by researchers when they screened milk from millions of cattle.
Fonterra sustainable milk growth general manager Mark Leslie said the cow, named Marge, had emerged during the company's routine screening programme.
He said the milk from Marge was significantly lower in fat content than that from other cows. The development is so commercially sensitive that the herd's location is secret.
Marge was discovered in 2001 when Fonterra's researchers bought her from her owner for $330 and moved her to a secret location.
Butter from Marge's cows has the extra advantage of being spreadable straight from the fridge, like margarine.
Fonterra's wholly owned biotechnology subsidiary, ViaLactia, was said to have set aside $150 million for the research project, but Mr Leslie rejected those estimates as "well out of the ballpark".
He declined to say how much would be spent on the research and development nor disclose what the critical herd mass would be before the product became marketable.
Making the project commercially viable depended on whether productivity gains could be made.
Mr Leslie estimated the product would not be ready to take to the international market for another five to 10 years.
"We are trying to build up a herd at the moment," he said.
