Fonterra signs up farms for a2MC
The coop’s initial milk pool will be based in the Waikato around its Hautapu site and will support the production of ingredients. It is anticipated around 100 farms will be needed for next season.
Jayne Hrdlicka, The a2 Milk Company managing director and CEO, said the farms will help support new growth areas for a2MC across existing and new markets.
The location of the milk pool was determined by several factors. Most importantly, the site needed the ability to manufacture the specific product in demand, produce relatively small batches and adapt easily to any product demand changes.
Mike Cronin, Fonterra managing director of co-operative affairs, said, “While other regions were thoroughly considered, ultimately the decision must be demand-led. The ability to efficiently manufacture a range of products to meet that demand was the over-riding factor in choosing a site.
“As demand and product lines grow, we’ll look to expand the milk pool to enable more farmers to participate.”
Most of the value from the relationship with The a2 Milk Company will be returned to all coop farmers through the dividend. Participating farms will also receive a premium for their milk.
The national launch of the a2 Milk brand by Anchor was in late September 2018.