Greenpeace Urges Investors to Push Fonterra Toward Sustainable Farming by Divesting

New Zealand 18.11.2024

Source: DairyNews.today

As external investors convened at Fonterra’s Auckland headquarters, Greenpeace intensified its campaign against the dairy giant’s use of palm kernel expeller (PKE) as cow feed, citing its role in rainforest destruction and wildlife endangerment in Southeast Asia. Greenpeace supporters assembled a symbolic giant puzzle outside the meeting, illustrating the environmental costs of PKE reliance.

Greenpeace Urges Investors to Push Fonterra Toward Sustainable Farming by Divesting

The environmental organization has called on investors to divest from Fonterra’s Shareholders Fund to pressure the company into eliminating palm kernel from its operations. This latest action follows protests at Fonterra’s AGM and a Greenpeace lawsuit under the Fair Trading Act, accusing the dairy corporation of misleading consumers about the environmental impact of PKE.

Investor Accountability and Environmental Costs

Greenpeace spokesperson Sinéad Deighton-O’Flynn emphasized the significant ecological and reputational risks tied to Fonterra's practices.

“Fonterra’s use of palm kernel supports dirty dairy operations and makes it New Zealand’s worst climate polluter. By investing in Fonterra’s Shareholders Fund, stakeholders are complicit in the destruction of Southeast Asia’s rainforests and the loss of rare species such as orangutans and pygmy elephants,” said Deighton-O’Flynn.

New Zealand: A Global Palm Kernel Importer

New Zealand leads the world in palm kernel imports, bringing in over 1.7 million tonnes in 2023. PKE is used to sustain the intensive dairy farming model, which relies on supplementary feed due to overstocked herds and insufficient grazing land. Greenpeace argues that this practice undermines global sustainability standards, posing reputational and financial risks for Fonterra.

Call for Sustainable Reform

Greenpeace has proposed a shift away from reliance on palm kernel and intensive dairy farming. “Fonterra must end the use of palm kernel, reduce herd sizes, and support a transition to ecological plant-based agriculture,” said Deighton-O’Flynn.

The organization recently launched a petition demanding a ban on PKE across all Fonterra farms. Within two months, over 11,000 individuals signed the petition, signaling growing public demand for sustainability in dairy farming.

Greenpeace urges investors to recognize the broader consequences of Fonterra's practices, warning that continued reliance on palm kernel jeopardizes both the environment and the company’s long-term viability.