The Organic Dairy Farmers of Australia (ODFA), the largest producer of Certified Organic milk in Australia, has entered voluntary administration.
Worrells Solvency and Forensic Accountants has been appointed the voluntary administrator of ODFA and said its appointment follows a range of external pressures.
These include a ‘contracting’ Chinese market, delayed sales and the impact of the coronavirus.
Established in 2002 as a co-operative, ODFA remains 100% owned by more than 40 family farmers who supply milk from the three main dairy regions of Victoria, as well as central and north-west Tasmania.
ODFA recruited farmers and their milk supply into the co-op as part of its vertical integration strategy, which had a strong focus on exports to China as many farms are also Chinese certified organic.
By appointing Worrells, ODFA aims to facilitate a structured and transparent approach to work through its current business challenges.
Worrells advises that all ODFA operations are trading and all employees are continuing in their respective roles with the administration still in its infancy.
Scott Andersen, one of the appointed administrators from Worrells, said: “Our goal, together with the co-operative’s directors, management and members, is to ensure that this integral and unique business continues to deliver its exceptional produce to Australians, and to the international market.
“We understand the enormous value and potential for the co-op. We have a robust strategy to turnaround its predicament for long-term viability and success.”
Under the voluntary administration process, the first meeting of creditors has been scheduled for 27 May 2020.
© FoodBev Media Ltd 2020