Fonterra has introduced an independent market-linked price for organic milk. From June onwards, organic milk payments will reflect the performance of the organic business. Organic farmers can choose either to stay under the current payment system and continue to receive a fixed premium together with the conventional Farmgate Milk Price, or move to the new one.
According to Craig Deadman, global business manager organics, Fonterra, the move recognises the commitment of Fonterra organic farmers.
“Organic milk products provide high-value returns for the Co-operative. We want to grow our organic business over the long term. Linking the organic milk price to organic market returns will help us to increase the number of organic farmers,” said Deadman.
ORGANIC MILK PRICE SET TO BE MARKET-LINKED
