Fonterra will again be offering an extra 1-2 cent in payment to farmers who reach the criteria for its Co-operative Difference scheme.
The additional payment is through its partnership with Nestlé. The final amount is calculated based on the number of farmers who achieve the Co-operative Difference. Fonterra expects this to be about 1-2 cents per kilograms of milksolids, and is paid in the final milk payment.
At the end of last year, Fonterra announced that this payment would be made to farmers achieving any of the three levels of the Co-operative Difference framework for the 2023/24 season.
The three levels include Te Pūtake (The starting point), Te Puku (The mid-point) and Te Tihi (The summit of the mountain).
Fonterra’s director of sustainability, Charlotte Rutherford, said the extra payment from Nestlé shows customer support for sustainable action continues to grow.
“Our partnership with Nestlé provides direct support to farmers to help them meet our co-op targets, while at the same time giving Nestlé confidence that we are helping them achieve theirs.”
Fonterra first announced its partnership with Nestlé in 2022 and, two years on, it includes multiple projects designed to support farmers with their sustainability actions.
“We’ve made a strategic choice to be a leader in sustainability and collaborating with high-value customers like Nestlé is a great way to accelerate progress.”
Aside from the extra 1-2 cent payment, there’s also a net zero dairy farm pilot, a GHG farmer support pilot project, and an on-farm tree planting programme.
“We’re pleased with the progress to date, but there’s more work to do on these multi-year projects. We look forward to strengthening our relationship with Nestlé to drive innovations and reduce on-farm emissions,” Rutherford said.
Nestlé Oceania director of corporate affairs and sustainability Margaret Stuart said collaboration of this kind will be key in the future of farming.
Fonterra has an ambition of being net zero by 2050, with 2030 targets including a 30% intensity reduction in on-farm emissions.
Globally, Nestlé is investing 1.2 billion Swiss Francs ($2.25 billion) by 2025 to advance regenerative agriculture and reduce emissions, aiming to source 50% of its ingredients through regenerative agriculture methods by 2030.
