Fonterra is inviting farmers in Southland and Canterbury to join its Organic Programme as the co-operative prepares to begin processing organic dairy at its Stirling site in the 2028/29 season.
“We already have a strong performing organic business but have more room for growth based on increasing demand from customers around the world,” says Anne Douglas, Group Director for Fonterra Farm Source.
The South Island recruitment adds to more than 100 North Island farms already supplying organic milk to Fonterra. The co-op is targeting minimum recruitment levels before Stirling starts segregated processing to maintain operational efficiencies.
“Expanding the programme seeks to offer South Island farmers another supply option and is also expected to benefit all Fonterra farmers based on the positive contribution our organic business makes to the wider Co-op’s earnings,” adds Douglas.
Fonterra offers farmers conversion support including advice, networking, mentoring, and financial incentives. Since the Organic Milk Price was introduced in 2016/17, it has delivered an average premium of around $2 per kgMS above the standard Farmgate Milk Price. Last season, certified farms received $12.35 per kgMS, with the forecast for 2025/26 at $13.10/kgMS.
“Organic farming might not be the right fit for all shareholders, but for those interested in converting it has the potential to unlock additional returns,” says Andrew Henderson, General Manager Organics.
Global demand for organic dairy continues to rise year-on-year. Fonterra points to its wide market access and established customer partnerships as key enablers for growth.
“At the heart of this business are farmers who are passionate about the principles of organic farming and who create goodness for customers and consumers around the world that value organic dairy,” Henderson says.
“We’re excited about its potential for further growth and would encourage any interested farmers to get in touch.”