fonterra is setting up an organic advisory committee in nz and also changing the way farmers are paid for their organic milk. They have agreed to pay a flat fee to the farmer or a percentage of the profits once the milk has been value added. This relationship with bal is more than a normal partnership. Fonterra is openly trying to build organic supplies which will help bal. there are numerous articles online detailing this strategic partnership.
With normal milk in oversupply Fonterra are strongly confident that farmers will turn to organic. Likewise if they haven't been using urea in fertilisers it does not take the 3years to get certified.
It's great to have strong partners like Bega and Fonterra. It's like we are brothers
BAL Price at posting:
$11.59 Sentiment: Buy Disclosure: Held
