Fonterra Admits Greenwashing in Anchor Butter Labeling Controversy

New Zealand's dairy giant Fonterra has settled a lawsuit with Greenpeace Aotearoa by admitting that its Anchor-brand butter packaging breached fair trade laws. The controversy arose from claims that the butter was '100% New Zealand grass-fed', while Fonterra's cows consumed palm kernel expeller, a supplementary feed imported into New Zealand.

New Zealand is noted as the largest importer of palm kernel expeller, a byproduct of the oil palm industry, which is linked to deforestation in Southeast Asia. Greenpeace's research, including findings from the Rainforest Action Network and Nusantara Atlas, connected this feed to illegal deforestation activities in Indonesia's Rawa Singkil Wildlife Reserve.

This admission by Fonterra is part of a broader trend of legal accountability within the meat and dairy sector. In March 2024, the Danish High Court ruled against Danish Crown for misleading 'climate-controlled pork' labels. Similarly, in 2025, Greenpeace filed complaints against Arla in Denmark and Sweden for overstating its climate progress.

Fonterra is currently in the process of selling its consumer brands, including Anchor Butter, to French dairy company Lactalis, expected to conclude later this year. This case adds to the growing pressure on dairy and meat corporations to maintain transparency and honesty in product labeling.

Greenpeace Aotearoa's Agriculture campaigner Sinéad Deighton-O’Flynn remarked on the significance of Fonterra's admission, highlighting the increasing public demand for corporate accountability in environmental claims.