Fonterra reaffirms its 2030 climate targets
Fonterra, New Zealand’s largest dairy exporter, has reaffirmed climate targets covering its processing plants and supplying farms. The targets require a 30% reduction in on-farm emissions intensity and a 50.4% reduction in absolute Scope 1 and 2 emissions by 2030, both measured against a 2018 baseline.
The co-operative said its manufacturing operations had reduced absolute Scope 1 and 2 emissions by 28.7% from the baseline. The change followed the withdrawal of coal-fired processes at manufacturing sites on New Zealand’s North Island and the continued conversion of thermal systems in the South Island.
Fonterra’s management said the engineering projects were intended to reduce fuel use while supporting the reliability and continuity of milk processing as energy systems shift towards renewable electricity. The reported progress in factories is ahead of the reduction recorded across the farms supplying the co-operative.
Combined Scope 1 and Scope 3 emissions intensity from dairy farming had fallen by 6.2% in 2026. Fonterra said further progress towards the 30% farm-intensity goal depended on regulatory approval and commercial use of agricultural technologies designed to reduce biological emissions.
The co-operative is directing venture funding through specialised research vehicles, including AgriZero NZ, towards methane-reducing feed additives, new bolus treatments and pasture-management methods. These initiatives are being assessed for their ability to reduce emissions from livestock and pasture-based production.
About 96% of supplying farm owners have completed standardised annual greenhouse-gas reports. The reports provide data on nutrient-use efficiency and herd management, but industry representatives said measurement alone had not yet produced cost-effective methane reductions. They said mitigation tools would need to be accessible to farmers, preserve animal productivity and pasture intake, and avoid increasing farm operating costs.
Fonterra’s climate targets also relate to commercial requirements in global food and nutrition markets. International food manufacturers and nutrition companies are applying supply-chain sustainability standards to address their own Scope 3 emissions. Dairy processors are therefore linking plant decarbonisation and methane-reduction efforts with the continued use of grass-fed claims and sales of higher-value dairy ingredients.
