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SI Fonterra Farms Lead the Way on Emissions

New Zealand 02.04.2025
Source: dairynews.today
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Fonterra-supplying farms on New Zealand's South Island are outperforming their North Island counterparts in reducing emissions, attributed to better pasture supply.
SI Fonterra Farms Lead the Way on Emissions
South Island Fonterra-supplying dairy farms are setting the benchmark for emissions reduction compared to their North Island peers, according to Fonterra. Key factors include consistent pasture supply and irrigation systems that provide reliability in feed production. Fonterra's Co-operative Difference payment incentives highlight regional discrepancies, indicating lower emissions further south.

 Mike Hide, Fonterra's director of on-farm excellence, notes that South Island farms benefit from large scales and modern infrastructure, leading to efficient home-grown feed production.

However, the variability in emissions is influenced by climatic conditions. The Co-operative Difference system, tracking data since 2021, reports growing success with 72% achieving base levels in 2021-2022, increasing to 87% in 2023-2024.

The report shows the Northland 50th percentile net emissions at approximately 920 CO2e/tonne of FPCM, while Canterbury's rate is notably lower at 760 CO2e/t FPCM. This difference is partially owed to the lower usage of nitrogen fertilizer and less reliance on imported feed in the South. Hide emphasized the importance of home-grown feed and regulatory controls that contribute to the South's lower emissions. Although incentive payments pose regional challenges, particularly for the North, the Co-operative Difference scheme ensures equitable benefit distribution among Fonterra farmers, promoting sustainable practices.

 This comprehensive approach not only aids in emissions management but maintains customer relationships by aligning payment systems with lower emissions goals.

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