Tuesday, 29 September 2020 07:25

Organic milk payout for 2019-20 season tops $10/kgMS

Written by  Sudesh Kissun
This season Fonterra will collect organic milk from 74 suppliers. This season Fonterra will collect organic milk from 74 suppliers.

It’s official, Fonterra’s organic farmers have become the first in the country to receive a double-digit milk payout.

As predicted by Dairy News, the cooperative’s 60 organic suppliers last season have set a record price for cow milk in New Zealand at $10.19/kgMS.

Fonterra’s global business manager organics Andrew Henderson told Dairy News that the final price was driven by a combination of factors including organic protein sales in the US, a favourable exchange rate and a number of efficiency improvements right across the supply chain. 

“This is a fantastic result for organic dairy in New Zealand, it sets a new benchmark for the value of our premium New Zealand grass-fed dairy products,” says Henderson.

“It’s something we can all be proud of because, ultimately, the result is a culmination of work put in by a wide group of people.

“It starts with the effort of our organic suppliers to meet and exceed organic certification standards.  Then it’s the endeavours of our transport, manufacturing, sales and marketing teams who all help make the most of that milk to drive returns and deliver value to the co-op.”

The list of organic milk suppliers is growing. 

This  season Fonterra will collect organic milk from 74 suppliers and about 25 additional farms are in the process of becoming organic farms, a transition that takes three years.

The co-op has set a 2020/21 forecast range $8.50 - $9.00/kgMS for this season.

Fonterra’s organic suppliers are based throughout the North Island, with most of the milk processed in Waikato. 

The Waitoa plant makes organic milk powders and UHT milk, the Morrinsville plant butter and milk powders, while Hautapu produces cheese, whey protein concentrates and milk protein concentrates. Anchor organic milk is generated at Palmerton North.

More like this

Payout lifts

The forecast milk payout for this season has gone up by 40c and Fonterra farmers can thank Chinese consumers.

Featured

Back the sector that backs NZ

OPINION: The biggest issue currently facing our industry is environmental policy, writes Beef+Lamb NZ chief executive Sam McIvor.

 

National

Machinery & Products

Let aura feed the mob

In a move that appears to have been repeated by many equipment manufacturers, Kuhn confirms it currently working on several…

Battery charger range recharged

Projecta's popular ‘Charge N’ Maintain’ automatic battery charger range has now been recharged – with the introduction of new features…

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Eyes have it

OPINION: Painting eyes on the backsides of cows could save their lives, according to new research by Australian scientists.

Walkers versus cows

OPINION: A North Yorkshire teacher has become at least the second member of the public to be trampled to death…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter