Nestlé will provide an additional payment of 1-2 cents per kilogram of milk solids to Fonterra farmers meeting The Co-operative Difference criteria, reinforcing their commitment to sustainable farming.
Fonterra, a leading dairy cooperative in New Zealand, has announced a new incentive in collaboration with Nestlé. This season, Nestlé will provide an additional payment of one to two cents per kilogram of milk solids to Fonterra farmers who meet the criteria of The Co-operative Difference framework. This initiative underscores both companies’ commitment to advancing sustainable farming practices.
Supporting Sustainable Farming
The additional payment, introduced in the 2023/24 season, rewards farmers based on their achievements within The Co-operative Difference framework, which includes three levels: Te Pūtake (starting point), Te Puku (midpoint), and Te Tihi (summit). The final payment amount will be determined by the number of qualifying farmers and will be included in the final milk payment for the season.
Charlotte Rutherford, Fonterra’s Director of Sustainability, highlighted the importance of this collaboration. “Our partnership with Nestlé reflects growing customer support for sustainable farming initiatives and helps us meet our sustainability targets while supporting Nestlé’s goals,” Rutherford stated.
Ongoing Collaboration and Initiatives
Since their collaboration began in 2022, Fonterra and Nestlé have launched several projects aimed at improving sustainability in farming. These include the Net Zero Dairy Farm Pilot, the GHG Farmer Support Pilot project, and an On-farm Tree Planting program. These initiatives are designed to reduce on-farm emissions and promote regenerative agriculture.
Margaret Stuart, Director of Corporate Affairs and Sustainability at Nestlé Oceania, expressed her satisfaction with the partnership’s progress. “Collaborations like this are crucial for the future of farming,” Stuart remarked. She reaffirmed Nestlé’s commitment to supporting long-term sustainability projects, aiming to drive innovation and further reduce environmental impacts on farms.
Ambitious Sustainability Targets
Fonterra has set ambitious goals, including achieving net-zero emissions by 2050 and reducing on-farm emissions intensity by 30 percent by 2030. Nestlé has committed NZD 2.25 billion by 2025 to advance regenerative agriculture and reduce emissions, with a goal to source 50 percent of its ingredients from regenerative agriculture by 2030.
This additional payment not only incentivizes Fonterra’s farmers but also strengthens the collaboration between Fonterra and Nestlé, setting a precedent for sustainable farming practices in the industry.
