In a statement on Thursday, Fonterra chief executive Richard Allen said there had been strong interest from South Island farmers wanting to join its organic programme.
Fonterra had reached the volume of milk required to deliver the operational efficiencies needed to proceed with the expansion.
In a statement in January, Fonterra Farm Source group director Anne Douglas called for expressions of interest from dairy farmers ‘‘in Southland and up to Canterbury’’.
The recruitment drive was targeting either organic dairy farmers wanting to switch to supplying Fonterra or those interested in converting their dairy farm to gain organic certification.
The co-operative planned to process organic dairy products at its Stirling site, near Balclutha, from the 2028-29 season, Ms Douglas said.
Mr Allen said global demand was growing, as consumers were prepared to pay a premium for organic products.
The forecast organic milk price range for this season and the next had a record midpoint of $14 per kg of milksolids, which showed how much customers valued Fonterra farmers’ organic milk.
Fonterra Organics general manager Andrew Henderson said the co-operative looked forward to supporting the farmers who had signed up including those who were now converting their farm systems.
‘‘There’s still room to expand our organic programme and we’re welcoming conversations with farmers in both the North and South Islands about what converting to organics might look like for their business.’’
