Bellamy’s Australia (ASX:BAL) has new plans to increase organic milk supply in its infant formula products.
They plan to amend an agreement with Fonterra Australia to begin development of a Tasmanian organic milk pool at Fonterra’s Darnum site.
They also want a new multi-year agreement to secure access to Australian sourced organic fresh milk with an affiliate of Australian Consolidated Milk and an amended agreement with Tatura Milk Industries (ASX:TMI) to incorporate fresh organic milk into production.
Bellamy’s is committed to supporting the conversion of conventional Australian dairy farms to organic farms.
They will support the development of the pool with an initial investment of $5.5m to assist the installation of processing assets to facilitate organic milk handling and processing.
Shares in Bellamy’s Australia (ASX:BAL) closed up 4.51 per cent to $16.91 yesterday