They are helping farmers to produce what it labels as "low-emissions milk". Photo: Adam Simpson
International food and beverage conglomerates Mars and Nestlé are helping fund Fonterra's farmers to produce what it labels as "low-emissions milk".
The dairy co-operative rewarded its farmer-suppliers for environmental and climate efforts through its "co-operative difference" scheme to drive sustainable farming.
Fonterra announced in February its major international customers Mars and Nestlé would help separately fund two new incentives for farmers towards the production of low-emissions milk, which included the on-farm tools and a farmer incentive payment.
Around 6000 farms, or 87 percent of the co-op's 8000 farmer suppliers, were estimated to qualify for a $1500 reimbursement for an on-farm emissions reduction tool this season.
Around 6000 farms were estimated to qualify for a $1500 reimbursement. Photo: 123RF
Chris Appleby, director of On-Farm Excellence within Farm Source, said it received good interest from farmers on the new scheme.
"There's been really good engagement with our farmers across the country on what was in behind that."
Appleby said the tools were selected based on feedback from farmers over the past few months.
"Then, it's about making sure that those solutions in our scalable, available right across the country, and really importantly, [tools that] actually help and we know will make a difference in terms of increasing or supporting that emissions intensity reduction as well," he said.
Eligible farms under the co-operative difference scheme had to have emissions less than the co-op's 2017/2018 baseline, accounting for emissions from feed, fertiliser, livestock and drained peat soils, with carbon offsets.
More farmers within the co-op were meeting this threshold over time, with 72 percent of its farmers achieving the base level or above in 2021/2022, 83 percent the following season and 87 percent in 2023/2024.
Eligible farms under the co-operative difference scheme had to have emissions less than the co-op's 2017/2018 baseline. Photo: RNZ / YouTube
For the emissions incentive payment, Appleby said it expected around 350 farmers, that had the lowest emissions footprint in the co-op, would be eligible for the extra 10 cents to 25 cents per kilogram of milk solids.
Meanwhile, Farm source group director Anne Douglas said the on-farm solutions will help its farmers.
"These will benefit a large group of farmers by supporting them to further improve efficiency gains and emissions intensity reductions, which will in turn help us make progress towards our co-op's on-farm emissions target."
Tools included animal performance through LIC and CRV, pasture optimisation through Pasture or Aimer subscriptions, data optimisation subscriptions for FarmIQ or Trev, and on-farm planting using a nursery of farmers' choice.
Applications open in August.
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