Fonterra is moving ahead with expanding its organic business after successfully recruiting a group of southern dairy farmers.
In January, Fonterra Farm Source group director Anne Douglas called for expressions of interest from dairy farmers in Southland through to Canterbury.
The recruitment drive targeted both existing organic dairy farmers looking to switch to supplying Fonterra and conventional farmers interested in converting their farms to obtain organic certification.
On Thursday, Fonterra chief executive Richard Allen said there has been strong interest from South Island farmers keen to participate in the company’s organic programme.
Fonterra has now reached the milk volumes needed to achieve the operational efficiencies required to move forward with the expansion.
Douglas said the co-operative plans to process organic dairy products at its Stirling site near Balclutha starting in the 2028–29 season.
Allen said global demand is increasing, with consumers willing to pay a premium for organic products.
The forecast organic milk price range for this season and the next has a record midpoint of $14 per kg of milk solids, highlighting the strong value customers place on Fonterra farmers’ organic milk.
According to Fonterra Organics general manager Andrew Henderson, the co-operative looks forward to supporting farmers who have signed up, including those currently transitioning their farm systems.
“There’s still room to expand our organic programme,” Henderson said.
“We’re welcoming conversations with farmers in both the North and South Islands about what converting to organics might look like for their business.’’