FONTERRA Australia and Bellamy’s Organic Pty Ltd have signed a long-term supply agreement for the recruitment and supply of organic milk in Tasmania.
As part of the agreement, Fonterra Australia will work with Tasmanian dairy farmers to establish an organic milk pool, with the organic milk going into Bellamy’s Organic nutritional powders to help meet demand both in the Australian and export markets.
The organic milk will be processed at Fonterra’s Spreyton plant in Tasmania, then sent to Darnum in Gippsland, Victoria, for further processing into nutritionals.
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“Tasmania offers the right conditions to develop a world-class organic dairy ecosystem. With its high rainfall and developing irrigation scheme, coupled with our agile site at Spreyton, we believe that Tasmania is an excellent location to grow a high-quality organic milk pool,” Mr Dedoncker said.
“The development of an organic milk pool is also a positive for Tasmanian farmers, who will have the opportunity to tap into the premium and stability that organic milk attracts.
“Organic dairy products such as nutritional powders command a premium, creating a high-value return, and we want to work with Tasmanian farmers interested in organic dairying to grow that organic milk pool over time.”
Bellamy’s Organic chief executive Andrew Cohen, said that this is an exciting step forward for Bellamy’s and the Australian organic dairy industry.
“We hope to improve outcomes for Australian farmers and support the Tasmanian dairy industry, and believe that Bellamy’s in partnership with Fonterra are uniquely positioned to drive this change in Tasmania where our business was founded,” he said.
“We believe the rising demand for our brand and high quality, premium organic infant formula in Australia, China and emerging Asia can become an important and value-added platform for Tasmanian farmers, and look forward to talking more with the local community about this future.”
By: SIMONE SMITH
Source: The Weekly Times