Partnership will run until mid-2021

Partnership will run until mid-2021

Bubs Australia said it will become the country's first company to offer locally-produced organic grass-fed infant formula after inking a supply and manufacturing agreement with Fonterra, the world's largest dairy cooperative based in New Zealand.

Fonterra's Australian unit will supply Bubs with organic milk powder sourced from its organic milk pool in New Zealand under a deal that will initially last until the end of July 2021, according to a Bubs' filing with the Australian Securities Exchange.

Sydney-listed Bubs is engaged in the manufacture of formulas and baby foods, with goat's milk products a key area of the company's expertise.

The new product, Bubs Organic, will be available in Chemist Warehouse pharmacies throughout Australia within three months, with exports to China to follow shortly via e-commerce channels.

Kristy Carr, Bubs' founder and chief executive, said: "Super premium product offerings are the fastest-growing segment of the infant-formula category, and we are now able to offer two nutritional options – organic and goat, to suit individual dietary needs – tapping into the global consumer trend towards natural, sustainable and organic food production.

Bubs Organic contains both prebiotics and probiotics, along with Omega-3 DHA and Omega-6 ARA.