Fonterra is moving into a2 milk production, with many of its farmers interested in getting into the market.

Fonterra's Head of Farm Source for Canterbury, Tasman and Marlborough Charles Fergusson, caught up with The Country Early Edition's Rowena Duncum for a chat about a2 and what it could mean for the co-op.

This week Fonterra's Anchor brand has gained a new a2 product that is being distributed "up North," which "is a really exciting time for the co-op," says Fergusson, who is looking forward to its release in the South Island in October.

Fergusson says the reason Fonterra is moving into a2 is about "keeping pace with market demands."

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Back in the day, milk came in two forms "silver top and blue top and not much else," says Fergusson. Now times have changed and there is a demand for a2 along with the other products we are more accustomed to, such as low-fat or organic milk.

Fergusson says a2 production will "start small," and is coming from one Fonterra dairy farm in the Manawatu but this will "grow over time."

Listen below: