Nestlé is urging New Zealand dairy farmers to improve their efficiency and reduce emissions to meet the company’s sustainability goals. Despite New Zealand’s low carbon footprint, it faces challenges compared to European and North American farming models. Enhancing milk production efficiency, particularly through better cow nutrition, presents a significant opportunity for farmers. Nestlé’s global roadmap aims to cut emissions by 20% by 2025 and 50% by 2030, making it essential for New Zealand to advance its practices to support these targets.
Nestlé has recently issued a challenge to New Zealand dairy farmers, urging them to improve their efficiency to meet the company’s growing needs. Despite New Zealand’s reputation for having a low carbon footprint, Nestlé’s global procurement team highlights that it may not be the lowest globally.
Efficiency and Emissions
The focus is on enhancing productivity to reduce carbon emissions. While New Zealand’s pasture-based farming model contributes to lower emissions compared to other regions, there is a significant opportunity for improvement in milk efficiency. This involves adopting better cow nutrition and production practices to boost per-cow efficiency.
Comparative Farming Models
European and North American farming models, which often involve housing cows indoors, offer more technological opportunities to lower emissions. In contrast, New Zealand’s outdoor pasture-based system, though sustainable, presents limitations in emission reduction compared to more controlled farming environments.
Opportunities for Farmers
Improving efficiency is seen not as a threat but as a chance for farmers to enhance their productivity and resilience against price volatility. Better efficiency can lead to reduced emissions and potentially higher revenue, aligning with Nestlé’s sustainability goals.
Consumer Expectations and Farming Practices
The emphasis is on improving the existing pasture-based system rather than shifting to more industrial practices. Consumers are increasingly concerned about the safety and sustainability of their food, although there is limited understanding of production methods. Nestlé acknowledges the historical significance of New Zealand’s farming model and seeks to enhance its efficiency without changing the fundamental outdoor approach.
Nestlé’s Commitment and Goals
Nestlé, which spends $20 billion annually on ingredients, relies heavily on dairy and has a long-standing relationship with New Zealand. The company’s roadmap aims to reduce its emissions by 20% by 2025 and 50% by 2030. Achieving these targets is crucial for Nestlé, as two-thirds of its emissions originate from ingredient production. The company continues to work with global farmers to support sustainable practices and finance necessary changes.
Nestlé’s call to New Zealand dairy farmers highlights the need for ongoing improvements in efficiency and sustainability. While New Zealand’s dairy sector has made strides, further advancements are needed to meet global environmental goals and remain competitive in a changing market.
