Fonterra says it will keep the clipped organic wing of its business going for now.
The dairy company said that the streamlining of its organic milk collection at one key production site, which began in 2011 and involved the dumping of half its organic suppliers, had reduced its costs.
That, together with increasing demand for organics in China had seen Fonterra's organics business return to profitability.
As a result, Fonterra said it would renew the contracts with its organic farmers in the middle and lower North Island, which were due to expire this year.
However, the co-op said it was still conducting a thorough review of its organics business.
Fonterra said while it knew its organic farmers wanted certainty - it was critical for all of Fonterra's farmers that it got it right.
