Shares in Tasmanian baby formula company Bellamy’s Organic have spiked after it announced a multi-million-dollar agreement with Fonterra Australia to increase production.
The move came after a recent spike in global demand for organic baby formulas, particularly from China, which resulted in buyers clearing supermarket shelves of Bellamy’s formula.
Under the five-year deal, Fonterra’s south-east Victorian plant will manufacture a range of new organic formulas for the Launceston-based company.
The announcement pushed the share price to a year-high of $11.73, before closing at $11.55.
The company listed at just $1 a share in August last year.