In­fant milk for­mula to pres­sure mar­ket

Central and North Rural Weekly - - RURAL WEEKLY - PETER HEM­PHILL peter.hem­phill@news.com.au

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.

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