Fonterra Strengthens Incentives to Slash Farm Emissions
Source: Dairynews.today
Fonterra has revamped its Co-operative Difference payment system to encourage farms to cut down on emissions, set to impact over 5000 farms next season.
Fonterra, the New Zealand-based dairy cooperative, has announced significant changes to its Co-operative Difference payment system, aiming to further incentivize farmers towards reducing their on-farm emissions. The updated strategy introduces an 'emissions excellence achievement' reward, offering additional compensation based on specific emissions criteria met.
As of June 1, Fonterra will enhance its payment offerings, granting between 1-5 cents per kg of milk solids for farms adhering to emissions-related benchmarks, in addition to the already available up to $0.10/kg MS across all framework achievements. This move is part of an overarching plan to push the cooperative towards more sustainable practices.
Collaborations for Sustainability
Moreover, additional backing from corporate giants such as Mars and Nestlé will facilitate new incentives, helping align with both the companies' and Fonterra's sustainability targets. Funding from these collaborations will focus on on-farm solutions alongside direct payments to farmers.
Expected to engage over 5,000 farms next season, Fonterra forecasts that 87% of its farmers will qualify, receiving further support through on-farm tools for enhanced emissions efficiency, featuring services from partners like LIC and CRV.
The refined model outlines a dual-tier incentive: a farm-based solution package and an extra monetary bonus of $0.10-25/kg MS for those with emissions scores significantly below the cooperative's average.
This initiative reflects Fonterra's commitment to addressing climate change while aligning with global sustainability efforts, underscoring the role of agriculture in New Zealand's environmental strategy.
As of June 1, Fonterra will enhance its payment offerings, granting between 1-5 cents per kg of milk solids for farms adhering to emissions-related benchmarks, in addition to the already available up to $0.10/kg MS across all framework achievements. This move is part of an overarching plan to push the cooperative towards more sustainable practices.
Collaborations for Sustainability
Moreover, additional backing from corporate giants such as Mars and Nestlé will facilitate new incentives, helping align with both the companies' and Fonterra's sustainability targets. Funding from these collaborations will focus on on-farm solutions alongside direct payments to farmers.
Expected to engage over 5,000 farms next season, Fonterra forecasts that 87% of its farmers will qualify, receiving further support through on-farm tools for enhanced emissions efficiency, featuring services from partners like LIC and CRV.
The refined model outlines a dual-tier incentive: a farm-based solution package and an extra monetary bonus of $0.10-25/kg MS for those with emissions scores significantly below the cooperative's average.
This initiative reflects Fonterra's commitment to addressing climate change while aligning with global sustainability efforts, underscoring the role of agriculture in New Zealand's environmental strategy.
