US remains important market - Fonterra
Fonterra says the US continues to be an important market for New Zealand dairy and the co-op.
A small but select group of Fonterra farmers are on the cusp of setting a new milk payout record.
The co-op’s 60 organic milk suppliers are forecast to receive $9.80/kgMS for last season’s milk. A final wash-up payment in October could potentially take that payout into double digits – over the $10 mark – a first for New Zealand dairy industry.
Fonterra global business manager organic, Andrew Henderson told Dairy News that the last season had been an “incredibly good year” for the co-op’s organic business.
Henderson believes a payout over $10/kgMS farmgate milk price is highly likely – based on returns from sales.
Fonterra has a small niche organic business – just 60 fully certified organic suppliers supplying 5 million kgMS last season.
The co-op recently held a round of farmer meetings to update organic suppliers on the global market outlook. It also unveiled a new logo for its organics business.
Henderson says the feedback from farmer suppliers has been positive.
“They are very happy with the record payout and very supportive of the business,” Henderson told Dairy News.
Fonterra’s organics business has evaded any negative impacts of the Covid-19 pandemic raging around the world.
![]() |
---|
Fonterra’s organic milk. |
Henderson says demand for organic dairy products has gone up in recent months.
Reports from retailers in key markets – the US, Australia and South Korea – suggest there has been increased demand for organic products as consumers focus on health and wellness during the pandemic.
“The outlook for organics is positive,” Henderson says.
Fonterra’s organic story is a positive one, propped by grass-fed cows and cost-effective farming practices.
Henderson says co-op has one of the best milk stories in the world, with brands that are trusted by consumers around the globe.
Fonterra’s organic suppliers are based throughout the North Island with most milk is 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.
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 process that takes three years.
UDSA standard
Fonterra's organic certification is linked to US Department of Agriculture (USDA) standards.
Henderson says the USDA organic standards are one of the toughest in the world.
Fonterra’s main markets for organics are the US, South Korea and Australia.
While the co-op doesn’t export organic products to China, sales in NZ and Australia “end up in China”, Henderson told Dairy News.
Federated Farmers supports a review of the current genetic technology legislation but insists that a farmer’s right to either choose or reject it must be protected.
New Zealand’s top business leaders are urging the US Administration to review “unjustified and discriminatory tariffs” imposed on Kiwi exporters.
New tariffs imposed by President Donald Trump signal an uncertain future, but New Zealand farmers know how to adapt to changing conditions, says Auriga Martin, chief executive of Farm Focus.
A global trade war beckons, which is bad news for a small open economy like New Zealand, warns Mark Smith ASB senior economist.
Carterton's Awakare Farm has long stood as a place where family, tradition and innovation intersect.
Fonterra says the US continues to be an important market for New Zealand dairy and the co-op.
OPINION: Is it the beginning of the end for Greenpeace?
OPINION: The good times felt across the dairy sector weren't lost at last week's Beef + Lamb NZ annual meeting.