Talk Money: May 9, 2016
Organic milk prices are booming. But the product accounts for less than one percent of Fonterra's production.
The co-operative has announced that from August it will start paying its 60 organic farmers $9.20 per kilogram of milk solids. That compares to $3.90 for conventional suppliers.
This reflects the rise of premium products here and in markets like China, South Korea and Taiwan. Organic whole milk powder is selling for 5 – 6 times regular milk powder.