Fonterra rejects an accusation that it is not fully committed to organic production.
The company has been criticised by the organics sector for its decision to halve the number of its North Island organic milk suppliers because export sales have fallen in the EU and US and it's losing money on the product.
The national organics organisation, the Soil & Health Association, says the decision is shortsighted because sales in some markets are growing again.
The association says it wonders whether Fonterra was ever really committed to organic production.
Fonterra disputes that: milk supply general manager Steve Murphy says it has the ability to review its decision if price margins and demand for organic dairy products recover.
Meanwhile, he says, Fonterra will continue to honour existing contracts of all its organic suppliers, some of which have several years to run.
