Fonterra launches Anchor Organic

Fonterra's Anchor Organic milk will work out be about 20c per glass more expensive than its standard Anchor brand.

Fonterra has delved into the world of organic milk through the nationwide launch today of a new brand, Anchor Organic.

As it stands, organic milk represents about 2.5 per cent of the market but is a segment that is growing quickly, Fonterra Brands New Zealand managing director Tim Deane said.

Organic milk represents about 8 per cent of the UK milk market and 15 per cent of the market in the United States.

Deane said in New Zealand the existing organic milk brands were only available in certain regions or were expensive.

He said Anchor Organic would work out be about 20c per glass more expensive than its standard Anchor brand.

Deane said the higher price reflected higher costs of organic farming, and the added complexity of keeping the milk separate through the collection and bottling processes.

Fonterra's market research showed that 72 per cent of respondents said they would buy organic milk more often if it was more affordable.

"The total organic food and beverage market is now worth more than $133 million and the amount of organic milk sold domestically over the past year has increased by more than 50 per cent," he said in a statement.

Anchor Organic milk drinkers will be able to trace their milk from the fridge back to the farms it comes from, Deane said.

The milk is being sourced from Fonterra organic farmers in the Manawatu.

Introduction of the new organic milk follows the launch of two new new yoghurts, Anchor Uno and Anchor Greek over the past eight months.

Anchor Organic joins Mainland Organic cheese, an already-established organic product from the Fonterra stable.

The new milk will be available to cafes, foodservice outlets and dairies from this week and will be available in supermarkets from May 18.