Infant milk formula to pressure market
WATTLE Health Australia’s expansion plans for producing adult and infant milk formulas may put pressure on the nation’s supply of raw product.
Supplies of organic milk in Australia may come under pressure if WHA’S rollout of infant formulas eventuates within three years.
Through its joint venture with Corio Bay Dairy Group, WHA plans to move from processing 14 million litres of organic milk in the first year of operation after its new spray dryer is commissioned in May to 34 million litres in year two and 46 million litres in year three.
CBDG chief executive and WHA managing director Tony Mckenna said the group planned to move to the spray dryer’s annual capacity of 60 million litres by its fifth year of operation.
WHA has a 45 per cent stake in CBDG, with Niche Dairy owning 5 per cent and Organic Dairy Farmers of Australia 50 per cent.
ODFA’S contribution to the joint venture is supply of organic milk.
It has the largest pool of organic milk in Australia – 40–45 million litres.
Another 20 million litres is going through the three-year conversion process to be certified organic.
Dr Mckenna said ODFA had been contracted to supply 46 million litres – the whole of its current supply – within three years from the organisation’s membership base of about 50 farmers.
He conceded that might put pressure on other ODFA customers, such as Lactalis, Bellamy’s Organic and organic yoghurt manufacturer five:am.