Fonterra’s latest sustainability report has revealed that its New Zealand-based dairy farmers produce 20% more greenhouse gas emissions per kilogram of milk than their counterparts in Australia.
This finding challenges the long-held assertion that New Zealand dairy has the lowest carbon footprint globally—a claim often cited to counter proposals for emissions pricing in the country.
The report, published in September, quantifies the emissions for each kilogram of fat- and protein-corrected milk produced by Fonterra’s New Zealand suppliers at 1.05 kg of carbon dioxide-equivalent (CO₂-e). By contrast, Fonterra’s Australian farmers generate only 0.88 kg CO₂-e per kilogram of milk, signaling a lower environmental impact per unit of output in Australia.
The discrepancy in emissions could fuel ongoing discussions around New Zealand’s emissions pricing policies, as well as broader sustainability strategies within the agricultural sector. The data underscores potential opportunities for Fonterra to implement emissions-reducing initiatives to close the gap and align with its stated goals of lowering carbon emissions across its global supply chain.
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