Thread: Organic farm

Fonterra says it is "desperate" to gets its hands on organic milk supplies because it is worth five times more than conventional.

Recently, in an offer that was not made public, Fonterra increased the premium it pays to organic farmers by 25c per kilogram of milk solids, to a total of $1.75. Added to the forecast price of $3.85 announced last week and organic suppliers will receive $5.60 per kg/ms for this season.

The international retail price of organic milk powder is $14,600 per tonne compared to about $2800 for non-organic. Skim organic powder fetches $12,500.