Mars & Nestlé Fund Kiwi Dairy to Drive Sustainable Milk Production.
Fonterra, New Zealand’s dairy giant, is rolling out a significant incentive program for its farmer-suppliers, backed by major international food and beverage companies, Mars and Nestlé. This collaboration aims to bolster the production of “low-emissions milk” as part of Fonterra’s “co-operative difference” scheme. The initiative is designed to recognize and reward dairy farmers who demonstrate exceptional environmental and climate efforts, thereby driving wider adoption of sustainable farming practices across the New Zealand dairy sector.
The program is set to provide substantial financial benefits to a large segment of Fonterra’s suppliers. Approximately 6,000 farms, constituting a remarkable 87% of Fonterra’s 8,000 farmer suppliers, are estimated to qualify for a $1500 reimbursement this season. This reimbursement specifically targets the adoption of on-farm emissions reduction tools, which are crucial for minimizing the environmental footprint of dairy operations. This widespread participation underscores the industry’s commitment to sustainable dairy farming.
Beyond the general reimbursement, a select group of approximately 350 Fonterra farmers with the absolute lowest emissions footprint are poised to receive an additional premium. These top performers could see an extra payment ranging from 10 to 25 cents per kilogram of milk solids, providing a direct financial reward for their leadership in environmental stewardship. The tools and criteria for eligibility are meticulously based on farmer feedback, ensuring practical and effective strategies for emissions intensity reduction.
To qualify for these incentives, eligible farms must demonstrate an emissions profile lower than Fonterra’s established 2017/2018 baseline. This comprehensive assessment considers various emission sources and carbon offsets on the farm. The article highlights a positive trend: an increasing number of dairy farmers are consistently meeting this stringent threshold over time, indicating a growing success in implementing sustainable practices across the cooperative’s supply base.
For the international dairy community, agribusiness analysts, and food manufacturers, this Fonterra-Mars-Nestlé partnership signals a critical evolution in dairy economics. It demonstrates how major players are leveraging market-based incentives to drive environmental sustainability within their supply chains. This model encourages widespread adoption of low-carbon dairy production and aligns with global consumer demand for responsibly sourced products, setting a precedent for future collaborations in sustainable agribusiness.
Source: RNZ: Fonterra’s 6k low-emitting farmers set to benefit from Mars Nestlé funds
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