December 18, 2023


Nestlé partnership sees additional payment offered to Fonterra farmers for current season 




One year on from announcing a partnership designed to help reduce on-farm emissions, Fonterra and Nestlé have announced their next step to support farmers in New Zealand with their sustainability actions.


A new agreement will see Nestlé fund an additional payment to farmers who achieve one of the three levels of Fonterra's The Co-operative Difference framework during the 2023/24 season. Depending on the number of farmers that meet these levels, Fonterra expects the additional payment to farmers to be about 1-2 cents per kilogram of milk solids.


Fonterra chief executive officer Miles Hurrell welcomed Nestlé's continued support of farmers who are making continuous improvement with on-farm sustainability. 


"We are delighted to work in partnership with Nestlé to recognise the Co-op's farmers who are at the forefront of industry best practice," Hurrell said. "By working in partnership, we can grow sustainably together as we aim to produce lower carbon milk into the future." 


Globally, Nestlé is investing CHF1.2 billion (US$1.4 billion) by 2025 to advance regenerative agriculture and reduce emissions, aiming to source 50% of their ingredients through regenerative agriculture methods by 2030. 


Nestlé New Zealand CEO, Jennifer Chappell, said the organisation's success relies not just on working with processors, but also farmers who share this vision. 


"Nestlé has sourced dairy from New Zealand for well over a hundred years and we will continue supporting farmers, alongside our partners, to develop new economic opportunities and reduce their greenhouse gas emissions," Chappell added.


Fonterra has an ambition of being net zero by 2050, with 2030 targets including a 30% intensity reduction in on-farm emissions, which Nestlé welcomes.


"This move will encourage even greater action by farmers, researchers and policy makers in support of a just transition for the dairy industry, which in turn will help the industry and dairy farmers make the most of the economic opportunities presented by the shift to lower emissions," Chappell said. 


- Fonterra

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