Bellamy’s Australia has signed three deals to try to tap into growing demand for organic infant formula.
The Australia-listed business is to team up with manufacturing partner Fonterra to development a pool for organic milk in Tasmania.
A second deal will see Bellamy’s source organic milk from an affiliate of Australian Consolidated Milk.
The third contract is with a second business that manufactures for Bellamy’s, the Australian group Tatura Milk Industries. The deal will see an organic component added to their existing arrangements.
“We believe the rising demand for our brand and high quality, premium organic infant formula in Australia, China and emerging Asia can become an important and value-added platform for Australian farmers,” Bellamy’s CEO Andrew Cohen said.
The deal with Fonterra will see Bellamy’s take the first 20 million litres of milk from the organic milk pool a year. The business will have first rights over additional volume.
Australian Consolidated Milk has been developing a pool of organic milk pool since 2016. It will construct a new milk processing plant in Girgarre in the state of Victoria during 2018 capable of processing organic milk simultaneously with conventional milk. The deal with Bellamy’s gives Australian Consolidated Milk a customer for its organic milk.