One year after announcing a partnership designed to reduce on-farm emissions, Fonterra and Nestlé confirmed their next step to support farmers with their sustainability actions.
In a new agreement, Nestlé funded an additional payment to farmers who achieved one of the three levels of Fonterra’s Co-operative Difference framework during the 2023/24 season. Depending on the number of farmers that met these levels, Fonterra expects the additional payment to farmers to be about 1-2 cents per kilogram of milk solids.
Fonterra CEO Miles Hurrell welcomed Nestlé’s continued support of farmers improving on-farm sustainability.
“We were delighted to partner with Nestlé to recognise the Co-op’s farmers at the forefront of industry best practices,” said Hurrell.
“By working in partnership, we could grow sustainably together as we aimed to produce lower carbon milk into the future.”
Globally, Nestlé invested 1.2 billion Swiss Francs (NZD 2.25 billion) by 2025 to advance regenerative agriculture and reduce emissions, aiming to source 50 percent of their ingredients through regenerative agriculture methods by 2030.
Nestlé New Zealand CEO Jennifer Chappell said their success relied on working with processors and farmers who shared this vision.
“Nestlé has sourced dairy from New Zealand for well over a hundred years, and we will continue supporting farmers, alongside our partners, to develop new economic opportunities and reduce their greenhouse gas emissions.”
Fonterra was ambitious to be net zero by 2050, with 2030 targets including a 30% intensity reduction in on-farm emissions, which Nestlé welcomed.
“This move would encourage even greater action by farmers, researchers, and policymakers in support of a just transition for the dairy industry, which in turn would help the industry and dairy farmers make the most of the economic opportunities presented by the shift to lower emissions,” said Jennifer Chappell.
