Australian Dairy Farms has announced plans to convert its six dairy farms in the state of Victoria to organic production as part of the company's plans to transform itself into a producer of organic infant milk formula. Credit: Pixabay.

Australian Dairy Farms has announced plans to convert its six dairy farms to organic production as part of the company’s plans to transform itself from being a minor participant in the conventional milk market to being a supplier of organic infant formula made with Australian produced and processed organic milk.

The company will also invest in associated operational changes to successfully specialise the production facilities on land it already owns. The new facilities will be based on ten acres of commercial and industrial zoned land in Camperdown acquired last November.

Australian Dairy Farms CEO Peter Skene said: “This is a high value-added market with major barriers to entry and sparse competition. The initiatives are a first significant step in making the company a major player in producing and distributing organic premium-quality branded food products.

“The initiatives are a first significant step in making the company a major player in producing and distributing organic premium-quality branded food products.”

“While a vertically integrated and efficient producer currently, the company has a modest market share in the conventional milk market. The board believes the company’s best prospects lie with moving up the value chain to be a highly profitable manufacturer of these speciality products.”

The company’s core assets are its six farms, located in Victoria’s golden triangle of dairy production in the state’s south-west.The properties include 3,600 acres populated by 3,500 free-range milking cattle collectively producing 17 million litres of milk a year.

In addition to its farms, Australian Dairy Farms also own the Camperdown Dairy Company (CDC), a milk processing facility capable of producing specialist milks such as organic, Jersey and free range.

CDC’s products include bottled milks, butter, cream and yoghurts under its own brand labels, as well as being a contract packer for other suppliers.

Australian Dairy Farms began developing its five-year plan to become an organic infant formula producer, which includes a comprehensive feasibility assessment, 18 months ago.