Fonterra organic cuts a suspected plan to introduce GE crops

Fonterra's plan to reduce organic farm production by 50% is a suspected plan to introduce genetically engineered crops into New Zealand, GE Free New Zealand say.

"To say they will never produce organic milk in the lower North Island is revealing about what the Fonterra plan for consumers is."

GE Free New Zealand spokesman Jon Carapiet said the dairy giant should be investigated for price gouging and regulated.

Fonterra’s Group Director Supplier and External Relations Kelvin Wickham announced yesterday the organic business needed restructuring due to the global financial crisis impacting organic sales.

Mr Wickham said a four point plan will ensure organic sales break even.

The co-operative will cut transport costs by focusing organic production at North Island organically certified processing site Hautapu.

"Focusing most of our organic product through a single site will mean we are able to create efficiencies of scale in processing the milk."

“Our organic farmers are currently spread right across the North Island. This means substantial transport costs for the business."

Mr Wickham said research revealed people are less willing to pay a premium for organic products.

"Consumers are gaining more confidence that everyday products are being produced more sustainably and are more acceptable so they no longer see the need to pay the premium for most organic products.”

GE Free New Zealand spokesman Mr Carapiet rejected Mr Wickham's claims.

"Though people may not be able to afford organic dairy that doesn't mean they don't want it!"

A Dairy Board survey showed 60% of New Zealanders wanted to buy more organic dairy products, he said.

Mr Wickham said they “will honour all of our organic contracts through to their formal termination dates, which in some cases are four-five years away and we will work with our farmers as they make the transition out of the organics programme.”