Wednesday, October 17, 2018
 Fonterra To Grow Organic Milk and Milk Powder Business  

Fonterra has announced it will expand its organic milk business to help meet growing demand, particularly from Asian consumers. Fonterra’s global business manager for Organics, Craig Deadman, said that while organic dairy remains a specialty 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 favor 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.”


He said that growing Fonterra’s Organics business is all about developing and selling higher-value specialty products at premium market rates. “Following our review, we have refreshed our growth strategy to enable us to grow the business, profitably and sustainably. This strategy reflects the volumes our customers have indicated they need to satisfy increasing demand for organic dairy.”

Fonterra is also increasing the total certified organic payment to $1.50 per kg milk solids from June 1, 2015 to contribute to the costs of maintaining organic certification, in addition to the certified organic milk premium of $1.05 per kgMS.

The strategy also includes Fonterra’s recent acquisition of an 18.8% share in China-based Beingmate Baby & Child Food Company.

Source: Manufacturers' Monthly (Australia) 


Posted on Friday, March 27, 2015 (Archive on Friday, April 03, 2015)
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