Greenpeace Urges Fonterra Investors to Act on Palm Kernel Use Amid Protests
Source: DairyNews.today
Greenpeace has ramped up pressure on Fonterra, New Zealand’s largest dairy producer, urging investors to divest from its Shareholders’ Fund over the corporation’s continued use of palm kernel as cattle feed, which the environmental group claims drives rainforest destruction and threatens endangered wildlife in Southeast Asia.
At Fonterra’s Auckland headquarters, Greenpeace supporters assembled a giant puzzle to illustrate the environmental costs of palm kernel consumption, coinciding with the company’s external investors meeting. The protest follows Greenpeace’s lawsuit under the Fair Trading Act, alleging Fonterra misled consumers about its reliance on palm kernel, and demonstrations at the company’s recent annual general meeting.
Environmental Concerns
Greenpeace spokesperson Sinéad Deighton-O’Flynn said the palm kernel supply chain is intrinsically linked to deforestation, human rights abuses, and habitat destruction for species such as orangutans and pygmy elephants.
“Fonterra’s use of palm kernel underpins its intensive dairy model, contributing to rainforest destruction and making it New Zealand’s worst climate polluter,” said Deighton-O’Flynn. “By investing in Fonterra, shareholders are complicit in the destruction of one of the world’s last rainforest havens.”
New Zealand is the largest global importer of palm kernel, bringing in more than 1.7 million tonnes in 2023 to feed cattle. Critics argue this dependency arises from overstocked herds, which exceed the country’s natural grassland capacity.
Financial and Reputational Risks
Deighton-O’Flynn warned that Fonterra’s continued use of palm kernel poses significant reputational and financial risks as global consumers increasingly demand higher sustainability standards.
“Fonterra must recognize the mounting pressure for sustainable practices. Investors should consider the long-term implications of associating with a product tied to deforestation and ecological harm,” she added.
Calls for Reform
Greenpeace has called on Fonterra to phase out palm kernel use, reduce herd sizes, and support farmers in transitioning to plant-based, sustainable agricultural methods.
A Greenpeace-led petition demanding an end to palm kernel use across Fonterra’s farms has gathered over 11,000 signatures since its launch in late September, signaling growing public discontent with the dairy giant’s practices.
Fonterra has yet to publicly respond to Greenpeace’s latest appeal, but the protests highlight escalating scrutiny on the environmental footprint of New Zealand’s intensive dairy industry.
Environmental Concerns
Greenpeace spokesperson Sinéad Deighton-O’Flynn said the palm kernel supply chain is intrinsically linked to deforestation, human rights abuses, and habitat destruction for species such as orangutans and pygmy elephants.
“Fonterra’s use of palm kernel underpins its intensive dairy model, contributing to rainforest destruction and making it New Zealand’s worst climate polluter,” said Deighton-O’Flynn. “By investing in Fonterra, shareholders are complicit in the destruction of one of the world’s last rainforest havens.”
New Zealand is the largest global importer of palm kernel, bringing in more than 1.7 million tonnes in 2023 to feed cattle. Critics argue this dependency arises from overstocked herds, which exceed the country’s natural grassland capacity.
Financial and Reputational Risks
Deighton-O’Flynn warned that Fonterra’s continued use of palm kernel poses significant reputational and financial risks as global consumers increasingly demand higher sustainability standards.
“Fonterra must recognize the mounting pressure for sustainable practices. Investors should consider the long-term implications of associating with a product tied to deforestation and ecological harm,” she added.
Calls for Reform
Greenpeace has called on Fonterra to phase out palm kernel use, reduce herd sizes, and support farmers in transitioning to plant-based, sustainable agricultural methods.
A Greenpeace-led petition demanding an end to palm kernel use across Fonterra’s farms has gathered over 11,000 signatures since its launch in late September, signaling growing public discontent with the dairy giant’s practices.
Fonterra has yet to publicly respond to Greenpeace’s latest appeal, but the protests highlight escalating scrutiny on the environmental footprint of New Zealand’s intensive dairy industry.
