Fonterra is preparing to expand its organic milk production to try to meet growing consumer demand, especially in Asia, following a review of the market.
Fonterra’s global business manager for organics, Craig Deadman, told farmers this week that the cooperative is committed to developing its organic milk supply over the long term to meet the demand.
Deadman said that, while organic dairy remains a speciality product, more people are choosing organic dairy products and he expects this trend to continue, particularly in South-East Asia, China and in the United States.
“Chinese consumers are quickly developing a strong liking for organic dairy and organic options are always welcomed.”
Deadman said that Asian consumers also favour organic milk powders, especially infant formula and fortified milk powders.
“We have recently launched Anchor organic milk powder in China and it is already proving very popular with shoppers there.”
Fonterra is also increasing the total certified organic payment to $1.50 per kg milk solids from 1 June 2015.
