- Organic dairy producers Wattle Health has released it growth strategy for the coming years
- As part of a joint venture, the company is developing the nation’s first organic nutritional spray drier facility
- It will be able to process 120 million litres of milk per year at full capacity
- Wattle Health’s share price is up 20 per cent today, currently sitting at $0.54 apiece
Organic dairy producer Wattle Health has seen its share price jump 20 per cent today after outlining its growth strategy moving forward.
Company Chairman Lazarus Karasavvidis admits it has been a difficult 12 months for the company on a “micro and macro level,” however, it is actively working on refining its production process.
Global demand for organic products has nearly doubled since 2012 with dairy accounting for the biggest portion. Over the next five years, demand for organic infant formula is expected to annually rise by 12.6 per cent.
In 2018, Wattle Health entered a joint venture with the Organic Dairy Farmers of Australia and Niche Dairy. Through the partnership, the companies are constructing the nation’s first organic nutritional spray drier facility.
With completion set for next year, the spray drier facility will ramp up production of organic dairy products. Initially the facility will have the capacity to process 60 million litres of milk per year, with room to grow to 120 million litres annually.
Speaking on the new facility, Wattle Health’s CEO Tony McKenna said it will “allow us to draw on one of the largest pools of organic milk in Australia to manufacture products that are in high demand in target markets throughout Asia.”
Wattle Health has a working relationship with Australian packaging company Blend & Pack, ensuring an efficient production and distribution flow. The company has a five per cent stake in the packagers.
In the coming months, the company is releasing a new infant formula brand, Uganic. It will be distributed across the Australian and Asian markets.
Shares in in the company are worth $0.54 apiece at midday trade.