July 21, 2016

Australian Natural Proteins Limited has entered into a binding Heads of Agreement with the Anthony family of Fiji to establish a 500-cow organic dairy operation and processing facilities. The operation will  produce fresh organic milk and other dairy products in Fiji for the domestic market and for potential exports.

Under the terms of the agreement, Australia Natural Proteins will purchase a 1,000 acre organic farm and would pay for all infrastructure requirements of the farm and facilities, while the Anthony family would guarantee an off-take agreement to purchase and distribute all milk produced. The Anthony family will also acquire a stake in the company through the transaction.

Although Fiji might not seem the best environment for a successful dairy operation, Australian Natural Proteins executive chairman, Paul Duckett told ABC that the tropical climate could support dairying.

“Dairy farms are actually found in quite a few tropical areas around the world,” he said. “For example, Hawaii, many parts of South America and throughout Asia. In Fiji, the parts we are looking at are not the tropical, humid areas that one normally associates with the Pacific Islands. The areas that we are looking at are quite mild and quite sustainable for a dairy industry.”

With a permanent population of 900,000 and additional visitors numbering 754,000 per year, demand for fresh milk in Fiji is significantly higher than production. Currently, the country produces eight million liters per year through the farmer co-operative, FCDCL. However, ABC reports that demand exists for another 80 million liters, typically met by expensive imports.

All milk on Fiji is currently being sold in UHT packs and the partnership is looking to disrupt the market, initially producing 2.5 million liters of organic milk that it can sell at a premium, and ramping up production to five million liters within three years.

The plans to expand into Fiji are integrated with the completion of Australian Natural Proteins’ acquisition of its five-farm Dairy Complex in New South Wales and Victoria. Together, the five farms will be able to produce 24 million liters of milk per year from a herd of 3.500 cows, placing Australian Natural Proteins in the position to be able to use this production volume to “swap” for finished dairy products into the Fijian market, according to a company statement.

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Lynda Kiernan