Australian Dairy Farms to convert to organic milk

ADF said its board believed a move to convert its six Western District farms to organic milk production were the first steps in making the company a “major player in producing and distributing organic premium quality branded food products”.

The company is particularly eyeing off the organic infant formula market.

“This is a high value-added market with major barriers to entry and sparse competition,” ADF chief executive Peter Skene said.

“While a vertically integrated and efficient producer currently, the company has a modest market share in the conventional milk market.

“The board believes the company’s best prospects lie with moving up the value chain to be a highly profitable manufacturer of these specialty products.”

Shares in the company skyrocketed from last Friday’s close on the Australian Securities Exchange of 11 cents to 25 cents this morning.

They have since settled back to 19.5 cents.


Source: The Weekly Times


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