Fonterra has announced new funding and incentives designed help farmers reduce on-farm emissions.
Beginning on 1 June, the New Zealand-based co-operative will introduce a payment for farms that achieve certain emissions-related criteria as part of its co-operative difference framework.
Meanwhile, new incentives to farmers who reduce their emissions will be funded through separate agreements with Mars and Nestlé.
Fonterra CEO Miles Hurrell said the new incentives demonstrate the co-op's strategy in action.
“We’re growing relationships with customers who value the hard work farmers put into producing sustainable, high-quality milk, along with the co-op’s quality of on-farm data and ongoing commitment to improvement,” he said.
“This helps us make progress towards achieving our on-farm emissions target and deliver the highest returns for our farmer shareholders’ milk.”
A new emissions excellence achievement will offer a further payment of between 1c to 5c per kgMS for farms that meet certain criteria.
Nestlé New Zealand CEO, Jennifer Chappell, said that dairy remains the company’s largest source of greenhouse gas emissions.
“As we strive towards achieving net zero emissions by 2050, we are committed to reducing our Scope 3 emissions. We will continue to support farmers, in partnership with Fonterra, fostering new economic opportunities and helping them lower their greenhouse gas emissions.”
Funding
Co-operative Difference payment: A new emissions excellence achievement will offer a further payment of between 1c to 5c per kgMS for farms that meet certain criteria.
Based on last season’s data, it’s estimated that approximately 5,000 farms will be eligible for this payment next season.
On-farm solutions: Farmers who achieve the co-operative difference will be eligible for access to on-farm tools or services designed to further improve emissions efficiency, for example herd efficiency services from LIC and CRV.
Based on last season’s achievements, 87% of farmers would’ve been eligible.
Extra 10-25 cents per kgMS Emissions Incentive payment: Farmers who achieve the co-operative difference and have one of the lowest emissions footprints in the co-op will receive an emissions incentive payment of between 10c to 25c per kgMS.
Based on last season’s data it’s estimated that between 300 and 350 farms will be eligible for this payment next season.
Read more
How Ireland’s TB eradication plan stacks up against Australia and NZ
New Zealand aims to eradicate TB in livestock by 2026
Student farmer views: New Zealand calling after college
Ireland and New Zealand announce €5.2m funding for agri-climate projects
Fonterra has announced new funding and incentives designed help farmers reduce on-farm emissions.
Beginning on 1 June, the New Zealand-based co-operative will introduce a payment for farms that achieve certain emissions-related criteria as part of its co-operative difference framework.
Meanwhile, new incentives to farmers who reduce their emissions will be funded through separate agreements with Mars and Nestlé.
Fonterra CEO Miles Hurrell said the new incentives demonstrate the co-op's strategy in action.
“We’re growing relationships with customers who value the hard work farmers put into producing sustainable, high-quality milk, along with the co-op’s quality of on-farm data and ongoing commitment to improvement,” he said.
“This helps us make progress towards achieving our on-farm emissions target and deliver the highest returns for our farmer shareholders’ milk.”
A new emissions excellence achievement will offer a further payment of between 1c to 5c per kgMS for farms that meet certain criteria.
Nestlé New Zealand CEO, Jennifer Chappell, said that dairy remains the company’s largest source of greenhouse gas emissions.
“As we strive towards achieving net zero emissions by 2050, we are committed to reducing our Scope 3 emissions. We will continue to support farmers, in partnership with Fonterra, fostering new economic opportunities and helping them lower their greenhouse gas emissions.”
Funding
Co-operative Difference payment: A new emissions excellence achievement will offer a further payment of between 1c to 5c per kgMS for farms that meet certain criteria.
Based on last season’s data, it’s estimated that approximately 5,000 farms will be eligible for this payment next season.
On-farm solutions: Farmers who achieve the co-operative difference will be eligible for access to on-farm tools or services designed to further improve emissions efficiency, for example herd efficiency services from LIC and CRV.
Based on last season’s achievements, 87% of farmers would’ve been eligible.
Extra 10-25 cents per kgMS Emissions Incentive payment: Farmers who achieve the co-operative difference and have one of the lowest emissions footprints in the co-op will receive an emissions incentive payment of between 10c to 25c per kgMS.
Based on last season’s data it’s estimated that between 300 and 350 farms will be eligible for this payment next season.
Read more
How Ireland’s TB eradication plan stacks up against Australia and NZ
New Zealand aims to eradicate TB in livestock by 2026
Student farmer views: New Zealand calling after college
Ireland and New Zealand announce €5.2m funding for agri-climate projects
This is a subscriber-only article
SHARING OPTIONS: