Fonterra on Farm Efficiency & Emissions

Many of you will be getting your heads around Fonterra’s recent emission target of a 30% reduction in on farm emissions intensity by 2030 compared to 2018. This target has been put in place for several reasons.

1. Fonterra’s customers are requiring this. They all have green house gas targets and require it from their suppliers. To be able to access these high value markets targets must be set and met.

2. Finance: Sources of capital want to see a reduction in emissions over time.

3. Regulatory; Fonterra must meet disclosure requirements about their greenhouse gases.

While NZ dairy farmers start in a good position with them having the lowest baseline emissions intensity, the international competition is moving quickly. If Fonterra did nothing the overseas competition would overtake them. This would mean Fonterra’s high value customers would potentially move to other suppliers.

The 30% reduction is a collective target across the whole Co-op. To reach this there are four areas that will be addressed, with individual farmers probably most interested in the adoption of best farming practices. Think of it as an opportunity to use all the metrics you are being provided with, to improve efficiency on farm by addressing areas such as:

• Animal health: e.g. mastitis, Johne’s or lameness.

• Improving reproductive performance

• Genetics

• Nutrition

• Minimising environmental stress.

As the season progresses, we can have discussions about what this all means and talk through your Farm Insights Report.