New Zealand dairy giant Fonterra has sold its first organic products, which have been in the pipeline since July.

Fonterra subsidiary NZMP has produced 40 tonnes of organic cheese at its Hautapu factory since last month, most of which is destined for sale in New Zealand. NZMP has also been producing 14 tonnes of organic skim and wholemilk powder every two days at its Waitoa factory, also destined for sale in New Zealand.

The company aims to increase production to 400 tonnes of organic cheese and 1000 tonnes of organic milk powder each year. The expansion depends on whether farmers can produce enough organic milk. Milk is currently being supplied from 13 certified farms on New Zealand's North Island, but a further 66 farms are reported to be either interested in converting to organic farms or joining Fonterra's organic suppliers if they are already certified.