Organic benefits for Darnum

Darnum’s Fonterra plant will be part of a new organic milk deal for Tasmania dairy farmers.

Fonterra Australia and Bellamy’s Organic Pty Limited have strengthened their strategic partnership by signing 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 partnership will see organic milk processed at Fonterra’s Spreyton plant in Tasmania, before being sent to Darnum in Gippsland, Victoria, for further processing into nutritionals.

Growing urbanisation and rising incomes continue to fuel the growth of nutritional milk powders across emerging markets, with the category valued at more than US$50 billion globally and growing at double digit rates year-onyear.

Growth in organic dairy is set to rise by 33 per cent between 2017 and 2022, as consumers look for ways to live a healthier and more sustainable life.

Fonterra managing director René Dedoncker said the agreement was a win-win for both companies and for Tasmanian farmers, and deepens the partnership that has been in place since 2015.

“Bellamy’s Organic is a rapidly growing organic nutritionals brand and is an important customer of ours, and today’s announcement is another example of how we’re playing to our strengths in cheese, whey and nutritionals,” 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.”