Fonterra's record forecast organic milk price
Fonterra has announced a record forecast opening organic milk price of $12.30/kgMS for the new season.
The first week’s production of 1000L sold out within hours; today the company makes 40,000L of chocolate milk a week and consumers are clamouring for more.
Lewis Road Creamery owner Peter Cullinane believes the 100% New Zealand product has hit the sweet spot with consumers. “We’re thrilled with the feedback; 99.9% of consumers speak glowingly about it,” he told Dairy News.
Cullinane decided to introduce flavoured milk while one day watching the dairy section in a supermarket. “Right next door to fresh milk is flavoured milk packed in great 2L bottles but I thought they are not the finest examples of what New Zealand dairy can offer.”
He floated the idea with Whittakers and within a month Lewis Road Creamery chocolate milk was born.
He gives credit to Porirua-based Whittakers for supporting the venture. Lewis Road Creamery chocolate milk is available in 300ml and 750ml bottles. The company also makes organic fresh milk and organic and artesian butters.
Lewis Road Creamery products are made by Green Valley Dairy at its plant in Mangatawhiri, south of Auckland.
The phenomenal success of chocolate milk is putting strain on organic milk supply. Cullinane says the company’s focus on organic milk means it is “walking over thin ice”. Demand for organic milk products locally and for export is greater than milk supply.
Cullinane says the company is working with Green Valley to maintain organic milk supply year-round.
“There is no doubt that in the future of New Zealand dairy, there is a big role for value powders… but there is also a huge opportunity for quality products. We believe organics is part of the picture; our products have proven that.”
Green Valley general manager Corrie Den Haring says the chocolate milk launch has “gone well beyond expectations”.
He confirms the strong demand is putting more pressure on a limited organic supply base. “Domestically and for export, demand is greater than supply; however price expectations are unrealistic from the supply side.”
He wants more done to promote organic dairying in NZ considering public concern over sustainability and the environment.
“Organics could and should be seen and embraced as one of the models that alleviates general consumer concerns,” he says.
