Going organic – what is involved?
Becoming an organic farm is a structured process that takes time, planning and commitment. This section outlines the practical steps involved in converting and supplying organic milk, including the initial approval process.
Support is available throughout the approval and conversion process. For further information, talk to the Organic Team or contact your certification body.
- Conversion typically takes up to three years
- Certification is independently managed
- Farms operate to organic standards throughout
- Progress is confirmed through annual audits
- For farmers considering organic, we recommend reviewing this page first
Before starting conversion, farms must be approved to convert to Fonterra Organic. Approval considers farm system factors to support long term success. Farmers work directly with the Fonterra Organic team and a certification body throughout the process.
The main steps
- Application approved to convert to Fonterra organic
- Register with a certification body
- Create an Organic Management Plan (OMP)
- Operate to organic standards during conversion
- Complete annual audits
- Achieve full organic certification
Step 1: Approval to convert to Fonterra Organic
The first step is to apply for approval to convert to Fonterra Organic. This helps confirm whether organic supply is currently feasible based on factors such as:
- Milk quality requirements
- Farm location and distance to organic processing facilities
- Individual farm system considerations
The organic team will talk through options, timing and next steps, and help you understand what may be possible in the future.
Step 2: Register with a certification body
Once approved, the next step is to register with a recognised organic certification body. Farmers choose which body they work with.
In New Zealand, organic certification is managed by:
Your certification body will guide you through requirements, timelines and documentation.
Step 3: Develop your Organic Management Plan (OMP)
An Organic Management Plan (OMP) outlines how your farm will operate within organic standards.
Your OMP includes:
- Farm maps and land history
- Input use and approval processes
- Animal health and welfare management
- Pasture, soil and nutrient management
- Record keeping systems
Your OMP is reviewed and updated each year.
Step 4: Conversion period (Years 1–3)
During conversion, farms operate to organic standards while progressing through certification stages.
What to expect during conversion:
- Annual audits against your OMP
- Separate conversion stages for land and animals
- Strict rules around inputs, feed and treatments
- Detailed record keeping
Each successful audit allows progression to the next stage of conversion.
Step 5: Audits and verification
Audits are a normal part of organic supply and continue once fully certified.
Audits generally include:
- Review of records and inputs
- On farm inspection and discussion
- Verification against standards
Step 6: Full organic certification
Once all requirements are met, farms achieve full organic certification and supply organic milk under certified status. Annual audits continue to maintain certification.
- Conversion takes time and preparation
- Record keeping is essential
- All inputs must be approved before use
- Requirements can vary depending on markets
- Your certification body is your primary point of guidance
Standards and certification
- Confirms milk meets recognised organic standards
- Is independently audited
- Supports access to export markets
- Is maintained through annual audits
To supply organic milk into the markets Fonterra exports to, farms must meet recognised organic standards, including:
- MPI Official Organic Assurance Programme (OOAP)
- MPI Organic Export Requirements (OPR)
- IFOAM standards
- USDA National Organic Program (NOP)
- Canadian Organic Regime (COR)
- Korean Organic Regulations
Standards may change as markets evolve.
Farmers choose which certification body they work with. In New Zealand, organic certification is managed by:
Certification bodies are responsible for:
- Audits and verification
- Input approvals
- Certification status
- MPI sets the regulatory framework for organic production and export
- Compliance is required to access approved international markets
- Certification bodies audit farms against MPI requirements as part of the certification process
- Accurate record‑keeping is essential
- All inputs must be approved before use
- Using a non‑compliant product can put certification at risk
- Requirements may change as new markets are added
Running a productive organic system
Organic farming is built on strong fundamentals and good planning. This section brings together practical guidance across key areas of the farm system to help you operate confidently within organic standards.
If you have questions about how these requirements apply to your system, support is available, please contact the team.
Animal health in organic systems is based on planned prevention, supported by nutrition, genetics and management rather than treatment after the fact.
Key focus areas
- Preventative animal health programmes
- Nutrition and feed quality
- Appropriate stocking rates and grazing management
- Breeding and genetics suited to organic systems
- Clear processes when conventional treatment is required
Pasture is the foundation of organic dairy systems. Diverse, resilient pastures support animal health, soil function and seasonal reliability.
Key focus areas
- Increasing pasture species diversity
- Grazing management to maintain pasture quality
- Use of herbal leys and deep‑rooting species
- Weed pressure management through system design
- Seed requirements, including non‑GMO certification
Organic systems rely on nutrient cycling and soil health, with strict rules around permitted inputs. All inputs must be approved and recorded.
Key focus areas
- Soil fertility and structure
- Use of permitted fertilisers and soil conditioners
- Input approval processes
- Record keeping for all inputs
- Managing nutrient loss and environmental risk
Milk quality remains critical in organic supply. Quality outcomes are influenced by animal health, nutrition, hygiene and management practices.
Key focus areas
- Preventative mastitis management
- Somatic cell count management
- Hygiene and milking routines
- Managing animal treatments and milk status
- Clear separation of organic and non‑organic milk where required
Organic farm performance is influenced by system design, input use and long‑term planning. Guidance on on‑farm economics will support decision‑making during conversion and ongoing supply.
Planned focus areas
- Input use and cost management
- Feed planning and budgeting
- System resilience over time
Organic Milk Price & financial information
Organic milk is priced separately and reflects the value of organic products sold in market.
- Introduced in 2016, the Organic Milk Price is designed to give farmers a fair market value return on organic dairy
- Historically delivers around a $2.05/kgMS premium above the conventional Farmgate Milk Price (future Organic Milk Price returns may vary)
- Contributes to the shared overheads and earnings of the wider Co-op
2024/25
Final Organic Milk Price
$12.35
per kgMS
as at September 2025
2025/26
Forecast Organic Milk Price
$13.35
per kgMS with a range of $13.05 - $13.65
as at February 2026
Information is provided to support cashflow and seasonal planning.
- Financial incentives form part of the support available to farmers converting to organic
- These incentives recognise the commitment required during the transition period
- Additional incentives may apply once certification milestones are reached
- Details vary depending on certification status and market utilisation
- Prices, advance rates and forecasts may change during the season
- Incentives apply at defined stages of conversion
- Terms and conditions apply
Support available to organic farmers
Support is available during conversion and ongoing organic supply, including financial support, specialist advice and access to the organic farming community.
Organic farmers are represented through the Fonterra Organic Farmer Advisory (FOFA) Group.
FOFA provides
- A feedback channel between organic farmers and Fonterra
- Input into programme development
- Updates on markets and the organic milk price
Learning from other farmers is an important part of organic farming.
Opportunities include
- Fonterra Organic e-newsletter
- Mentoring and shared learning with other organic farmers
- Organic discussion groups and events including the Fonterra Organic Conference - email us to find more (email to speciality.milks@fonterra.com)
- Case studies and practical examples through Enrich
- Webinars on practical topics related to organic systems, certification and market context.
- Fonterra Organic Facebook group
Some farmers choose to work with independent consultants for additional support. For further information please contact your Speciality Milk team.
These organisations provide research, advocacy and sector support.
Frequently asked questions
Organics is also referred to as biological, ecological or regenerative farming. An organic farming system is one that aims to work with natural biological cycles. Organic management recognises that, in any system, every element affects every other element and no one component can be changed or taken out of the system without affecting other components.
Organic management has a particular focus on optimal soil health and management. The soil is regarded as a living system on the basis that there is an essential link between creating healthy soils and healthy plants, animals and people. Fundamentally, organic management requires farmers to act proactively rather than reactively.
Organic management is based on a management system which aims to reduce or eliminate the need for most agricultural chemicals. Organic food is produced without the routine use of synthetic chemicals such as fungicides, herbicides, insecticides, growth regulators and soluble fertilisers.
But it is much more than “spray-free” or “residue-free”.
Organic farmers concentrate primarily on adjustments within the farm and farming system, in particular rotations using appropriate soil fertility management and cultivations, to achieve targeted production levels amd minimise the use of external inputs.
Key principles of organic farming are:
- Encouraging and enhancing biological cycles
- Maintaining and improving long-term soil structure and fertility
- Practising humane management of livestock
- Maintaining the genetic diversity of the agriculture system and its surroundings
- Cycling organic matter and nutrients within a production system
- Integrating management of soil, crop, and the environment for weed, pest and disease management
- Aiming to produce food of high nutritional quality in sufficient quantities
- Minimising all forms of pollution that may result from agricultural techniques
- Not allowing genetic engineering.
There are quite a few misconceptions about the principles of organic farming. Some of the more common misconceptions are discussed below.
- “Organic farming is farming without chemicals.”
All material, living or dead, is composed of chemical compounds. Although organic farming does seek to avoid the direct and/or routine use of synthetic chemicals, naturally-derived chemicals are frequently used in fertilising, plant protection and livestock husbandry. - “Organic farming merely involves substituting 'organic' inputs for so-called 'agro-chemical' ones.”
One of the founding principles of organic farming is working with natural cycles rather than trying to alter them by using external inputs. Although you could replace a number of non-organic elements with organic ones, the best farms work to improve their systems rather than use straight substitution of elements. - “Organic farmers don’t apply any fertiliser or manage weeds.”
While working with the natural processes, an organic farmer still needs to replace the nutrients that are lost with the removal of production of the farm. There are now a range of mainstream companies that offer organic certified products to farmers that provide the farm with essential elements.
Organic farmers are still required to manage the weeds on their farms to maintain farm production. This control includes more manual rather than chemical control of weeds. - “Organic farming means that production will drop by 20% plus.”
An organic system can be as productive as a conventional system, depending on the goal of the farmer. Any potential drop in production would depend on the farming system that is run prior to converting to organics and the production system that the farmer wants to run as their organic system. - “Organic farmers can’t look after their stock.”
An organic livestock farming system needs to have healthy stock to make a profitable farm. Therefore the animals need to be well looked after and treated well. The animals can be treated with certified organic inputs and a lot more work on disease prevention is carried out. However if an animal does not respond to organic treatment, then the farmer must use other methods of treating the animal. If this means that if a vet and conventional treatments are used, the animal is dealt with according to the certification level of the farm.
There are a number of products that have been approved for use in organic farming systems that can be used to treat animals. However in any farming system, the best cure is prevention, and this is the approach that organic farmers embrace.
All New Zealand livestock farmers must adhere to the Animal Welfare Act and treat animals accordingly. - “Organic farming is a return to farming as it was pre-1940’s.”
Farming practises and knowledge has greatly evolved since the early 1900’s and organic farming – like conventional farming – is making use of advances in our understanding of such things as mycorrhizal associations, rhizobia and the rhizosphere, the turnover of organic matter and other areas of soil life, crop and animal husbandry that modern science has revealed. Far from being a return to the past, organic farming is an agriculture system for the future. - “Organic farming requires a change of lifestyle on the part of the farmer.”
In recent years, organic farming methods have been adopted by a wide variety of farmers for a variety of reasons, including economic and social as well as environmental motives. Organic farming is certainly not the preserve of radical environmentalists. - “Organic farmers have higher on-farm costs.”
While some cost may increase under an organic production system, others will reduce. On average, costs like labour, brought in feed (per kg of dry matter) and fertiliser (per kg of nutrient) may increase, whilst other expenditure, such as vet bills and animal health costs, tend to decrease. On average, a well-run organic farm will see a drop in on-farm operational costs over time.
We can support you on your journey to becoming a certified organic farmer by working alongside you and your chosen certification body. Initially you will register with one of the two organic certification bodies in New Zealand that work with our farmers: AsureQuality or BioGro. Your certification body will guide and support you on your whole conversion and certification journey through annual audits, online tools and technical services.
The basis of organic certification is completing and maintaining an organic management plan which aligns the organic rules and how you farm under these rules. Your OMP (Organic Management Plan) also lists your pre-approved inputs for your land applications, animal treatments and any products you wish to use supporting your farming operation whilst maintaining your organic compliance.
A few of the markets we require certification for, can be certified under the MPI Official Organic Assurance Programme (OOAP) undertaken through your chosen certification body (AsureQuality or BioGro) at your annual audit. On top of these markets, Fonterra requires certification to Korean organic requirements, the United States Department of Agriculture National Organic Programme (USDA NOP) and Canadian Organic Regulations (COR). This suite of certifications gives your milk the best access to markets around most of the world.
The time it takes to gain certification will depend on the farm system’s starting point and what inputs (fertiliser, chemicals) have been used in recent times. Generally, it takes three years to certify the land from last use of a non-certified input and 18 months for stock which can be achieved alongside your land conversion, meaning your farm could achieve full certification of land and animals within a 3-year period.
To understand where your farming system fits within a conversion timeline it is advised that you reach out to either AsureQuality or BioGro to request an on-farm assessment, this would provide you with a clear understanding and pathway to becoming a certified organic farm supplying your milk to the Fonterra organic program.
During the conversion process the Co-op offers a support package designed to help farmers successfully transition – including a conversion incentive that’s paid over and above the conventional Farmgate Milk Price. This conversion incentive for eligible farmers will increase on 1 June 2026 from 45 cents to 70 cents per kgMS.
While it typically takes three years to become fully certified, certifications for a number of regions – including New Zealand, China, Europe, Korea and Taiwan – can be achieved after two and a half years. Once farms gain these certifications, they are then eligible for a utilisation incentive on top of the conventional Farmgate Milk Price and conversion incentive, given that the milk they supply can be utilised and sold as organic in those markets. From 1 June 2026, the utilisation incentive will rise from 15 cents to 25 cents per kgMS.
Organic milk price was introduced in the 2016/2017 season to ensure our organic farmers are paid a fair return for their organic milk, reflecting the market value it delivers.
In addition to receiving a market based return for milk sold as organic the organic milk price benefits from receiving the conventional farm gate milk price for any milk that can’t be processed or sold as organic.
The stability and strength of our organic program comes from the diverse portfolio of products and markets we operate in. The Co-op produces a range of organic milk products for distribution in New Zealand and internationally including fresh liquid milk, whole milk powder, skim milk powder, UHT drinking milk, butter, cheese, lactose, milk protein concentrate, and whey protein concentrate.
The organic milk charge ensures that we can pay farmers a fair market price for their organic milk and contribute to shared overheads, while ensuring the wider co-op receives a fair return on capital and the resources invested to deliver a premium return for organic milk.
The charge, set at 20% of organic sales revenue, is consistent with the gross margin for similar businesses, while allowing for the assets utilised and the added cost and complexity associated with organic segregation and management.
Please contact Stuart Luxton - Organics Business Relationship Manager.
Email: stuart.luxton@fonterra.com or specialty.milks@fonterra.com
Mobile: 021 241 8797
- AsureQuality: www.asurequality.com
- BioGro: www.biogro.co.nz
- View the Farmgate Milk Price Advance Rates