Fonterra is meeting with its organic famers to take them through a four-point plan to bring the loss- making business into a break-even situation.
The plan includes:
Wickham, director of external relations, said: “We will honour all of our organic contracts through to their formal termination dates, which in some cases are 4-5 years away and we will work with our farmers as they make the transition out of the organics programme.”
Wickham says the organics market was hit hard by the global financial crisis and market indications are that it will not recover to previous levels. He said: “Research shows people are now less willing to pay the premium for organic products. In addition, consumers are gaining more confidence that everyday products are being produced more sustainably and are more acceptable, so they no longer see the need to pay the premium for most organic products.”
Source: Fonterra
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