March 19, 2010

 

Fonterra is rolling out a major initiative to check every farm's effluent management infrastructure every year, in a move to address non-compliance with regional council dairy effluent rules.

 

It includes doubling the resources applied, to help suppliers achieve sustainable dairying on farm.

 

Announcing the programme, Fonterra Trade and Operations managing director Gary Romano said it will initially be piloted in the Waikato from March this year, with national rollout from the start of the 2010-11 financial year in August.

 

"Our goal is to halve significant non-compliance with council dairy effluent rules within 18 months, then trending to zero.  Going out to every farm across the country, every year as part of the annual Farm Dairy Assessment is the best way to achieve this. We will be working in partnership with our farmers to achieve a marked improvement in compliance."

 

Romano said Clean Streams Accord results for 2008-09, which showed national significant non-compliance with council rules now stood at 15% compared to 12% in the prior year, were "completely unacceptable".  There were reasons, but no excuses for the decline.

 

Under the new programme, Fonterra will check every farm's dairy effluent infrastructure every year as part of the annual Farm Dairy Assessment.  Systems found to be at risk of non-compliance will be referred to a Sustainable Dairying Specialist.

 

They will work with affected farmers to develop action plans and a timeframe for implementation. Where there is critical non-compliance, immediate action will be required.

 

Romano said the "every farm, every year" initiative is a step up in Fonterra's work with its shareholders to improve compliance with dairy effluent rules.

 

He noted the lack of year-on-year consistency by some councils in enforcing effluent regulations was creating understandable frustration among suppliers.

 

The programme complemented the Effluent Improvement Scheme (EIS) introduced last year.

 

Under the EIS, Fonterra steps in to work with a farmer who has been subject to council enforcement action for non-compliance; ensuring remedial plans are put in place. Deductions from the milk cheque - US$1500 for infringement notices and US$3,000 for prosecutions - will be made where there have been prosecutions.

 

Proceeds from these deductions are then applied to on-farm remedial work. The ultimate sanction for persistent non-compliance is refusing to collect milk, a sanction Fonterra had applied twice last year.

 

The new initiative sits alongside commitments already made by DairyNZ, Fonterra and Federated Farmers to improve compliance rates. These include the EnviroWalk tool which enables farmers to self-check effluent systems, the AgITO effluent training module for farm staff and the soon-to-be released code of practice for suppliers of effluent management equipment and advice.

 

Romano said the Waikato has been chosen as a pilot area because only 15% of farms in that region are currently monitored annually by Environment Waikato.