Fonterra is cranking up its production of organic milk products, but might find farmers not too enthusiastic about jumping on board.

The company's offering 45 cents per kilogram of milk solids to its organic milk farmers and a one dollar fifty premium at the other end, when it makes its payout to farmers.

Federated Farmers dairy chairman Andrew Hoggard says Fonterra has been sending mixed signals. Three years ago it cut the amount of organic milk it was taking from farmers.

"At the time they stated there wasn't enough demand for the product and they weren't making any money off it. They wanted the milk, then they didn't want the milk, now they want the milk again."