Sector News

Two leading organic companies form 'British Organic Dairy Company'

November 28, 2017
Food & Drink

Two leading organic companies have today announced the launch of their new joint business identity ‘The British Organic Dairy Company.’

The collaboration, between Wyke Farms and the Organic Milk Suppliers Cooperative (OMSCo), will provide a platform to produce key organic dairy products for domestic and global markets.

At the heart of the partnership is a desire from both companies to vertically integrate to produce a supply of organic dairy products across the globe.

Both companies hope to provide a unique proposition to distributors and retailers and take advantage of growing markets for organic British produce.

“In July, we announced that we were forming a partnership with Wyke Farms,” says OMSCo’s managing director Richard Hampton, “the partnership, within which we both have an equal share, provides us with a focus to grow organic dairy opportunities together.

“The launch of our business-to-business brand, ‘The British Organic Dairy Company’, is an exciting development and will enable us to facilitate the sales and marketing of our products under a joint brand identity.”

He adds that OMSCo has expertise in producing organic milk to specific export standards and already has EU, USDA and Chinese certification.

“Through the partnership, Wyke Farms will source all their organic milk requirements from ourselves, providing a flexible, yet guaranteed, supply of organic milk. And in turn, we will also take a share in the ownership of bulk organic cheddar stocks.”

‘Solid platform’
Richard Clothier, managing director and third generation family member at Wyke Farms, explains that the company is excited about the opportunities the joint identity presents.

He said: “We know that global demand for organic dairy is growing, but we’re also aware of domestic opportunities.

“For instance, the UK organic cheese category is currently under performing relative to overall organic dairy, with just 1% market share within cheese, compared to 5% in liquid milk and 8.5% in yogurt,” says Mr Clothier.

He attributes this shortfall to supply chain issues, such as poor-quality driving low repeat purchase, sporadic supply and a relatively costly supply chain.

However, he adds that through the partnership these issues will be mitigated. “Having a guaranteed supply of organic milk and mutual focus on growing the category will enable us to increase our stock levels and produce more cost-effective products.

“This will create a solid platform to grow sales of organic dairy products and enable us to reach the potential of a growing world market, now and post-Brexit,” adds Mr Clothier.

“The alliance brings together quality and excellence in organic dairy production, from the world’s second largest 100% organic milk producer, combined with award winning cheddar quality from Wyke Farms; the most sustainable cheese maker in the world – it really is a world beating collaboration.”

Source: Farming UK

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