Bega Cheese and Organic Dairy Farmers of Australia reach milk supply deal

Bega Cheese chief executive Paul van Heerwaarden said the deal meant Australian-produced organic infant formulas would no longer need imported organic milk powder from Europe over time.

Mr van Heerwaarden said Bega Cheese would produce the infant formula under the brand of one of its customers — believed to be Bellamy’s Organic.

“The big story here is about ingredient import replacement,” he said.

“There is a lot of organic skim milk powder and whole milk powder that comes out of Europe into Australia for use in organic infant formula.”

Mr van Heerwaarden said he expected the organic dairy sector to grow over time, with greater milk production from dairy farms.

“Once the industry gets to a certain scale, it will support a more competitive offering and allow that part of the market (organic dairy) to grow,” he said.

“There certainly is demand for it, both domestically and for export.”

Organic Dairy Farmers of Australia did not respond to questions from The Weekly Times.

By: PETER HEMPHILL

Source: The Weekly Times

Link: https://www.weeklytimesnow.com.au/agribusiness/dairy/bega-cheese-and-organic-dairy-farmers-of-australia-reach-milk-supply-deal/news-story/4a1114c05b7a973b0b3a4c08cf532a8b

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