With Taranaki-based New Zealand Organic Dairy Farmers Co-operative (NZODFC) going into receivership, Federated Farmers is praising Fonterra Cooperative Group for extending NZODFC suppliers a lifeline.

"Fonterra is acting in the best interests of everyone as this will ensure no milk is dumped and that former NZODFC suppliers remain viable," says Lachlan McKenzie, Federated Farmers Dairy chairperson.

"This is one cooperative riding to the rescue of another that has failed to reach a commercially viable critical mass.

"On a sad day that has cost around 30 jobs, Fonterra Cooperative Group's leadership will ensure that many more jobs are protected both on and off-farm.

"Former NZODFC suppliers will now have the option to supply Fonterra on either a shared-up basis or to take a growth contract. These suppliers will get Fonterra's organic premium so long as they meet Fonterra's criteria for organic milk.

"This will enlarge Fonterra's organic milk base.

"Fonterra was under no obligation to do this but is acting in the best interests of the New Zealand dairy industry.

"Frankly this is industry leadership at the highest level," Mr McKenzie concluded.