Tuesday, 31 May 2016 11:55

Fonterra playing catch-up – Quinn

Written by  Sudesh Kissun
Organic Dairy Hub’s milk has ended up in the domestic liquid market. Organic Dairy Hub’s milk has ended up in the domestic liquid market.

Fonterra this month announced a market-based payout for organic milk of $9.20/kgMS for the new season, up from the $5.65/kgMS it currently pays for organic milk.

The co-op says the new price "reflects consistently high prices for organic milk products in its global markets".

And Bill Quinn, Organic Dairy Hub, says its presence in the sector is raising awareness and the validity of organic milk.

He points out that in March last year, Fonterra's organic milk suppliers were paid the farmgate milk price plus $1.05 premium for every kgMS; the premium was later raised to $1.50, then $1.75.

In February this year, Fonterra announced it was going to a market-based payout.

"The question is, would that have happened if the hub was not there. I put it down to competition; it is healthy for the industry."

Quinn says Fonterra is playing catch-up to the Hub.

ODH pays its suppliers 90% of the milk price within one month and the remaining 10% within three months; all payments are finalised by June 20 of each year. All its trade is done in New Zealand and in NZ dollars.

He says the Hub is getting enquiries from Fonterra organic suppliers and other farmers.

"We are inundated with farmers willing to supply, from North Island and South Island. As a serious option corporate farms and iwi group farms are now looking at it, so we are talking big farms."

Organic farm numbers have declined from 127 five years ago to 70. However, for the first time in five years, applications for organic certification have grown.

Quinn says says he expects to see 100% growth in farms under organic certification in the next 12 months.

More like this

Living on an organic island

Running an organic dairy farm is a bit like living on an island where one has to be completely self-sufficient.

Organic focus

Five years after the completion of the Organic Focus Vineyards project, Rebecca Reider reports back on soil monitoring and success stories.


Industry backs recycling scheme

An on-farm plastic recycling initiative, Plasback, seems to be gaining momentum as the agricultural industry moves to reduce its environmental…

Buyer for VLG assets

The New Zealand Rural Land Company (NZL) says it has entered conditional agreements to buy assets from the Van Leeuwen…

Do more on climate change - Shaw

Climate Change Minister James Shaw says New Zealand dairy is the world's lowest greenhouse gas emitter but that's not good…

Machinery & Products

Methane-powered tractor coming

The first production unit of the T6 Methane Power tractor, a cornerstone of New Holland's energy independent farm concept, was…

Half a century and not out!

Suffolk, UK-based Richard Western Trailers has over 50 years' experience building high-end trailers, manure spreaders, chaser bins, drill fillers and…

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Less-gassy bulls

There may soon be another tool available to cut your climate footprint - select less-gassy bulls out of a catalogue.

Rock and a hard place

OPINION: Appease the Chinese and protect your export trade, like dairy products, or infuriate them and face sanctions.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter