Fonterra farmers to receive extra payment this season

One year on from announcing a partnership to help reduce on-farm emissions, Fonterra and Nestlé have confirmed the next step they’re taking to support farmers with their sustainability actions.

A new agreement will see Nestlé fund an additional payment to farmers who achieve one of three levels of Fonterra’s The Co-operative Difference framework during the 2023/24 season. Fonterra expects the additional payment to farmers to be about 1–2 cents per kilogram of milk solids.

Miles Hurrell, Fonterra CEO, has welcomed Nestlé’s support of farmers who are making continuous improvements with on-farm sustainability.

“By working in partnership, we can grow sustainably together as we aim to produce lower carbon milk into the future,” Hurrell said.

Globally, Nestlé is investing AU$2 billion by 2025 to advance regenerative agriculture and reduce emissions, aiming to source 50% of its ingredients through regenerative agriculture methods by 2030.

Jennifer Chappel, Nestlé New Zealand CEO, said the partnership’s success relies on working with both processors and farmers who share this vision.

According to Chappel, Nestlé has been sourcing dairy from New Zealand for well over a hundred years and, along with its partners, it will continue to support farmers with economic and sustainability initiatives.

Fonterra is aiming for net zero by 2050, with 2030 targets including a 30% intensity reduction in on-farm emissions, which Nestlé welcomes.

“This move will encourage even greater action by farmers, researchers and policymakers in support of a just transition for the dairy industry, which in turn will help the industry and dairy farmers make the most of the economic opportunities presented by the shift to lower emissions,” Chappell said.

Image credit: iStock.com/SimonSkafar