Bellamy's Australia Ltd share price up 5% as company pours funds into organic milk

Baby formula star stock Bellamy's Australia Ltd (ASX: BAL) is at the top of the S&P/ASX 200 gains list at the time of writing

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Baby formula star stock Bellamy's Australia Ltd (ASX: BAL) is at the top of the S&P/ASX 200 gains list at the time of writing – up 4.9% to $17.75 – off the back of deals with three businesses to move closer to its goal of converting all conventional Australian dairy farms to organic.

Bellamy's has made an initial $5.5 million investment with Fonterra Shareholders' Fund (ASX: FSF) to develop an organic milk pool in Tasmania – signing up to take 20 million litres of milk from the pool annually with first rights over the additional volume.

A new multi-year agreement with Australian Consolidated Milk will see Bellamy's guaranteed access to its supply as ACM constructs a new processing plant in Girgarre, Victoria.

And Bellamy's has formalised an agreement with Tatura Milk Industries Limited to incorporate fresh organic milk into its production process.

Bellamy's is an unstoppable leader in the baby food and formula space, paving the way for A2 Milk Company Ltd (ASX: A2M) and Bubs Australia Ltd (ASX: BUB) who are also finding some success in the niche.

Bellamy's shares are up an impressive 148% on its $7.14 share price at this time last year.

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »