New Zealand farmer owned co-op Fonterra has set a 30% reduction target on 2018 emissions levels for its farmer suppliers by 2030. The announcement was made at last week’s annual general meeting where chairman Peter McBride said that “there’s no one solution to reducing on-farm emissions. It will require a combination of sharing best farming practices and technology to reduce emissions.”

Fonterra has identified four pathways to deliver the 30% on-farm reduction. A 7% reduction is expected through farming best practice, such as feed quality and improving herd performance, and an 8% reduction is expected through carbon removals from existing and new vegetation.

A further 7% reduction is targeted from new technologies such as incorporating seaweed in the diet, and the final 8% of the target is expected from historical land-use change conversions to dairy.

In addition to this, Fonterra has committed to delivery of a 50% reduction in its Scope 1 & 2 emissions from the 2018 baseline by 2030.

These are the emissions that are directly incurred in operating the business and over which the business, in this case Fonterra, has complete control.

The emissions incurred by farmer suppliers to Fonterra are classified as Scope 3 emissions, which refer to any emissions associated with the business but are beyond direct control, as is the case with farmer suppliers.

Brazil JV exit

Fonterra has also completed its exit from its joint venture with Nestlé’s Dairy Partners Americas (DPA) in Brazil, with the completion of the sale to French dairy company Lactalis. Fonterra had a 51% stake in the joint venture and the sale was agreed in December last year for the equivalent of €135m subject to regulatory approval which has now been secured.