The Bellamy’s Australia Ltd (ASX: BAL) share price has risen by 6% in trade on Thursday morning according to Yahoo! Finance after announcing agreements to increase to its organic milk supply with Fonterra (ASX: FSF), Tatura Milk Industries and Australian Consolidated Milk.

Bellamy’s is a leading producer of organic infant formula and other baby products.

Bellamy’s said the agreement with Fonterra will see the development and conversion of a Tasmanian organic milk pool to support infant formula production, which is proving very popular in China.

Bellamy’s said that it is trying to convert conventional Australian dairy farms to organic farms, which will result in sustainable farming, improve farmer economics and promote safe premium Australian-made products.

Management confirmed that the existing manufacturing commitments with Tatura and Fonterra remain unchanged.

This is an exciting step forward for Bellamy’s and the Australian organic dairy industry,” CEO of Bellamy’s, Andrew Cohen, said. “We believe the rising demand for our brand and high quality premium organic infant formula in Australia, China and emerging Asia can become an important and value-added platform for Australian farmers.”

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