Nestlé has offered another one to two cent payment to Fonterra farmers who achieve The Co-operative Difference this season.
The payment was first offered to the Co-op’s farmers in the 2023/24 season to achieve any of the three levels of The Co-operative Difference framework. The final amount was calculated based on the number of farmers who achieved The Co-operative Difference.
Fonterra expects this to be about 1-2 cents per kilogram of milk solids, and it’s paid in the final milk payment. The three levels include Te Pūtake (the starting point), Te Puku (the midpoint), and Te Tihi (the summit of the mountain).
Charlotte Rutherford, Fonterra’s Director of Sustainability, said the extra payment from Nestlé showed customer support for sustainable action continues to grow.
“Our partnership with Nestlé provides direct support to farmers to help them meet our Co-op targets while at the same time giving Nestlé confidence that we are helping them achieve theirs.”
Fonterra first announced its partnership with Nestlé in 2022. Today, it includes multiple projects designed to support farmers with their sustainability actions.
“We’ve made a strategic choice to be a leader in sustainability, and collaborating with high-value customers like Nestlé is a great way to accelerate progress.”
Aside from the extra 1-2 cent payment, there’s a Net Zero Dairy Farm Pilot, a GHG Farmer Support Pilot project, and an On-farm Tree Planting programme.
“We believe collaboration of this kind, where Nestlé can work with suppliers like Fonterra to support farmers to reduce on-farm emissions, will be key in the future of farming,” said Margaret Stuart, Director of Corporate Affairs and Sustainability, Nestlé Oceania.
“We’re pleased with the progress to date, but there’s more work on these multi-year projects. We look forward to strengthening our relationship with Nestlé to drive innovations and reduce on-farm emissions.”
Stuart believed that a collaboration of this kind, where Nestlé can work with suppliers like Fonterra to support farmers in reducing on-farm emissions, will be essential in the future of farming.
Fonterra aims to be net zero by 2050, and its 2030 targets include a 30 per cent intensity reduction in on-farm emissions.
Globally, Nestlé has invested NZD 2.25 billion by 2025 to advance regenerative agriculture and reduce emissions. By 2030, it aims to source 50 percent of its ingredients through regenerative agriculture.
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇺🇸 eDairy News INGLÊS: https://whatsapp.com/channel/0029VaKsjzGDTkJyIN6hcP1K
