Fonterra and Nestlé Strengthen Partnership with Additional Payment for Sustainable Farming Practices
Source: DairyNews.today
Fonterra has announced that 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 season. This incentive underscores Nestlé’s commitment to supporting sustainable farming practices and Fonterra’s drive to lead in sustainability.
This extra payment, first introduced in the 2023/24 season, is awarded to farmers who achieve any of the three levels within The Co-operative Difference framework: Te Pūtake (the starting point), Te Puku (the midpoint), and Te Tihi (the summit). The final amount is determined based on the number of farmers who qualify for this recognition, and it will be included in the final milk payment for the season.
Charlotte Rutherford, Fonterra’s Director of Sustainability, emphasized the significance of this partnership with Nestlé, highlighting that it reflects the growing customer support for sustainable farming initiatives. “Our collaboration with Nestlé directly supports our farmers in meeting the Co-op’s sustainability targets, while also helping Nestlé achieve their own sustainability goals,” Rutherford noted.
Fonterra and Nestlé have been collaborating since 2022, launching multiple projects aimed at enhancing farmers' sustainability efforts. These initiatives include the Net Zero Dairy Farm Pilot, the GHG Farmer Support Pilot project, and an On-farm Tree Planting program, all 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 progress made so far. “We believe that collaborations like this, where Nestlé partners with suppliers like Fonterra to support farmers in reducing emissions, are crucial for the future of farming,” Stuart stated. She also reaffirmed Nestlé’s commitment to these long-term projects, which aim to drive innovation and further reduce environmental impacts on farms.
Fonterra has set ambitious sustainability targets, including achieving net-zero emissions by 2050 and reducing on-farm emissions intensity by 30 percent by 2030. Globally, Nestlé has committed NZD 2.25 billion by 2025 to advance regenerative agriculture and lower emissions, with the goal of sourcing 50 percent of its ingredients from regenerative agriculture by 2030.
This additional payment from Nestlé not only incentivizes Fonterra’s farmers but also strengthens the ongoing collaboration between the two companies, setting a precedent for the future of sustainable farming practices.
Charlotte Rutherford, Fonterra’s Director of Sustainability, emphasized the significance of this partnership with Nestlé, highlighting that it reflects the growing customer support for sustainable farming initiatives. “Our collaboration with Nestlé directly supports our farmers in meeting the Co-op’s sustainability targets, while also helping Nestlé achieve their own sustainability goals,” Rutherford noted.
Fonterra and Nestlé have been collaborating since 2022, launching multiple projects aimed at enhancing farmers' sustainability efforts. These initiatives include the Net Zero Dairy Farm Pilot, the GHG Farmer Support Pilot project, and an On-farm Tree Planting program, all 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 progress made so far. “We believe that collaborations like this, where Nestlé partners with suppliers like Fonterra to support farmers in reducing emissions, are crucial for the future of farming,” Stuart stated. She also reaffirmed Nestlé’s commitment to these long-term projects, which aim to drive innovation and further reduce environmental impacts on farms.
Fonterra has set ambitious sustainability targets, including achieving net-zero emissions by 2050 and reducing on-farm emissions intensity by 30 percent by 2030. Globally, Nestlé has committed NZD 2.25 billion by 2025 to advance regenerative agriculture and lower emissions, with the goal of sourcing 50 percent of its ingredients from regenerative agriculture by 2030.
This additional payment from Nestlé not only incentivizes Fonterra’s farmers but also strengthens the ongoing collaboration between the two companies, setting a precedent for the future of sustainable farming practices.
