Booming demand for organic dairy in Asia

To meet growing demand, Fonterra has announced it will expand its organic milk business.

While organic dairy remains a specialty product, more people are choosing organic dairy - and this trend is expected to continue, particularly in South-East Asia, China and the US, according to Craig Deadman, Fonterra’s global business manager for organics.

“Chinese consumers are quickly developing a strong liking for organic dairy and organic options are always welcomed,” Deadman said.

Organic milk powders are also popular with Asian consumers, Deadman said, especially infant formula and fortified milk powders.

“We have recently launched Anchor organic milk powder in China and it is already proving very popular with shoppers there,” Deadman said.

The company will reportedly increase the total certified organic payment to $1.50 per kilogram milk solids (kgMS) from 1 June 2015. This increased figure reflects a new farmer payment of an additional 45 cents per kgMS that goes some way to covering the costs of maintaining organic certification, plus the certified organic milk premium of $1.05 per kgMS.