Fonterra partners with The a2 Milk Company to expand reach

The Australian arm of Fonterra will set up an A2 milk pool to service its nutritional product range which is produced from its Darnum factory in Gippsland.

Dairy farmers will need to be recruited in Australia who are able to supply the specialist milk which is sourced from cows that produce A2 beta-casein proteins in their milk.

Fonterra will be working with their current Australian dairy suppliers and assist them transition to supply A2 milk.
What is A2 milk?

Over the past decade The a2 Milk Company, commonly known as a2, has become a major milk player in Australia with about 10 per cent of the market.

The New Zealand-based company owns the patent to the method for identifying the A2 milk cows, meaning it has been the only brand that can sell milk with the A2 label.

A2 refers to the beta-casein proteins found in milk.

Depending on a cow’s genetic make-up, it can produce either completely A1 beta-casein, a combination of both, or completely A2 beta-casein.

Product range to expand

Managing director of Fonterra Australia, Rene Dedoncker said the company believed there was significant opportunity for growth not just in nutritionals but in other categories as well.

“We’ll start and keep it focussed and controlled but we do believe it does have massive potential,” he said.

He said The a2 Milk Company currently manufactured fresh and powdered milk products and it was also looking to extend the range of products to cheese and butter.

“We will explore the option over the next 18 months and will make a decision on what categories that we choose to launch.”

The A2 milk will be processed at the Fonterra factory in Darnum on a segregated processing line separate to the rest of the production facilities.

Fonterra also announced that it has a licensing agreement for the production, distribution, sale and marketing of A2 milk in New Zealand.

 

 

Link: http://www.abc.net.au/news/rural/2018-02-21/fonterra-dairy-company-partners-with-a2/9469660

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