Fonterra to expand organic operations into South Island on rising global demand

Reuters01-21
Fonterra to expand organic operations into South Island on rising global demand

Jan 21 (Reuters) - New Zealand dairy giant Fonterra Co-operative Group FCG.NZ said on Wednesday it plans to expand its organic business into South Island farms, as it seeks to tap rising global demand for organic dairy.

The company is inviting applications from farmers in the South Island interested in converting to or have existing organic farms.

"We already have a strong performing organic business, but have more room for growth based on increasing demand from customers around the world," Anne Douglas, group director for Fonterra Farm Source, said in a statement.

"Our plan is to be able to process organic dairy products at our Stirling site from the 2028/29 season, with the recruitment process starting now to allow time for converting farmers to achieve organic certification."

Fonterra has an organic business since 2002, with most of its organic products currently processed at its Hautapu, Morrinsville and Waitoa UHT sites. It now plans to expand into South Island farms in Southland and up to the Canterbury region.

The dairy company said it will offer conversion incentives, advice, and networking opportunities to farmers throughout their transition to organic.

(Reporting by Shruti Agarwal in Bengaluru; Editing by Subhranshu Sahu)

((Shruti.Agarwal@thomsonreuters.com;))

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