Fonterra and Nestlé have shared promising results from their Net Zero Pilot Dairy Farm in Taranaki, two years on from announcing their partnership to help reduce on-farm emissions. The pilot, run with Dairy Trust Taranaki, aims to create New Zealand’s first commercially viable net-zero dairy farm within ten years. Since 2022, the Fonterra-owned 290ha farm has achieved an approximate 27% reduction in absolute emissions and a 5.5% reduction in emissions intensity.

“The reduction is promising, though results may vary seasonally. We’re pleased with our progress so far but still have a lot more work to do to make further improvements. We are trialling different tools and approaches to see what works and what doesn’t, and while some trials have shown promising early results, others have provided valuable insights and lessons.”

Charlotte Rutherford, Director of Sustainability, Fonterra 

The reduction in absolute emissions over the last two seasons was coupled with a decrease in milk production. Over this time the herd decreased from 600 to 550 cows and was switched to ten milkings across seven days rather than two milkings a day. This improved staff morale and reduced farm operating expenses but resulted in an 11-12% decrease in milk solids production per cow. The farm has returned to twice-a-day milking this season. The focus over the next three seasons is to reduce emissions intensity, targeting a 30% reduction by the 2026/27 season. This will be achieved through a focus on breeding and reproduction, calf-rearing, nitrogen use efficiency, and the use of novel technology.

“Strengthening relationships with strategic customers and innovating alongside them is a key focus for us, and we continue to look at the next steps in our partnership with Nestlé.”

Charlotte Rutherford, Director of Sustainability, Fonterra

Over the last two seasons, the trial of novel technology EcoPond has shown promising results in reducing methane emissions from the effluent by 93% since its installation in May. The EcoPond team is currently developing a method to treat the whole pond. Other novel technology includes the use of a milk cooling system via New Zealand-owned Coolsense, which is expected to reduce dairy shed power consumption by up to 30%.

Native trees, Kapuka and Kānuka, have been planted in 12m or 16m spacings to test two different densities and learn about silvopasture, the practice of integrating trees with grazing animals. The trees will grow to 10-15m in height, with the aim to balance the carbon, shade, and shelter benefits and minimize negative effects on pasture growth and management.

“By working together, we are learning what’s working best in practice now, but also paving the way for future advancements that will further support farmers.”

Jennifer Chappell, CEO, Nestlé New Zealand

Everything trialed and used on the 290-hectare farm needs to be scalable and must be economically viable and practical to adopt. Solutions also need to be good for the farmer, good for the cow, and good for the milk. In addition to the farm, Nestlé is partnering with Fonterra to provide direct support to farmers to help them reach the cooperative’s target of a 30% reduction in on-farm emissions intensity by 2030, from a 2018 baseline.

These projects are:

• GHG Farmer Support Pilot: An opt-in pilot sees enrolled Fonterra supplying farms get additional support to implement changes aimed at lowering their on-farm greenhouse gas (GHG) emissions. In 2022/23 the first group of 48 farms in the GHG Farmer Support Pilot achieved an average 5.2% reduction in emissions intensity, compared to their 2021/22 season baseline. Results for the 2023/24 season will be made available early next year.
• Tree Planting Project: An opt-in option for farmers who are already participating in the GHG Farmer Support Pilot. These farmers get support to plant native vegetation on land that’s unsuitable for grazing.
• Extra payment: Nestlé funded an extra payment for farmers who achieved The Co-operative Difference for the 2023/24 season, which was in the vicinity of 1.44 cents per kgMS. This payment to Fonterra farmers who achieve The Co-operative Difference will be offered again for the 2024/25 season.

“Strengthening relationships with strategic customers and innovating alongside them is a key focus for us, and we continue to look at the next steps in our partnership with Nestlé.”

Charlotte Rutherford, Director of Sustainability, Fonterra 

Globally, Nestlé is investing 1.2 billion Swiss Francs (NZD2.25 billion) by 2025 to advance regenerative agriculture and reduce emissions, aiming to source 50% of their ingredients through regenerative agriculture methods by 2030.

“The initial results are promising what’s more, these key insights we are gaining can be used by researchers and policymakers, showing the critical importance of partnership in achieving progress. By working together, we are learning what’s working best in practice now, but also paving the way for future advancements that will further support farmers.”

Jennifer Chappell, CEO, Nestlé

Fonterra and Nestlé will continue to share the results of technologies and initiatives trialed on the farm, with the hope that solutions can benefit dairy farmers.

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