Fonterra and Bellamy’s develop Tasmanian organic milk pool
Fonterra Australia and Bellamy’s Organic Pty 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.
Announcing the deal, René Dedoncker, managing director of Fonterra Australia, says the agreement is beneficial for both companies as well as 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 [the] announcement is another example of how we’re playing to our strengths in cheese, whey and nutritionals,” says Dedoncker.
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.
“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.
“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,” Dedoncker continues.
Bellamy’s organic CEO, Andrew Cohen, adds, “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.
“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.”