Southland farmer challenges Nestle's token premium and calls for internal focus
Source: The DairyNews
A Southland dairy farmer, Jason Herrick, is casting doubt on Nestle's recent offer of a modest milk price premium for farmers meeting quality, safety, and sustainability targets set by Fonterra.
Herrick argues that the additional payment of 1-2c/kgMS lacks financial viability for most farmers. In an interview with Rural News, he stated, "If you are going to dangle a carrot, make sure it is something decent to encourage change or what is going to be the actual beneficial outcome: zero."
Nestle's offer is tied to Fonterra's Co-operative Difference framework, which outlines farming and business practices emphasizing quality, safety, and sustainability. The framework has three levels: the start, the mid-point, and the summit, with rewards for farmers meeting criteria across environmental, animal, people, community, milk, and co-op & prosperity focus areas.
Herrick suggests that Nestle should focus on addressing issues within its own operations before making such offers. He stated, "Nestle would do far better if it cleaned up its own backyard, instead of focusing on a country that is doing far better environmentally than its home base."
The agreement between Fonterra and Nestle comes a year after the unveiling of a partnership aimed at reducing on-farm emissions. Fonterra's recent commitment to being net zero by 2050, with 2030 targets including a 30% intensity reduction in on-farm emissions, adds context to the ongoing sustainability efforts.
Some Fonterra farmers have raised concerns about the additional workload around sustainability and whether it will result in a substantial premium for their milk. Following Fonterra's announcement of the Nestle premium, social media saw farmers expressing frustration at what they perceived as a meager offer.
Herrick acknowledges that there might be a reason for Nestle's small premium but refrains from commenting to avoid sounding conspiratorial. Fonterra clarified that a majority of its farmers already achieve The Co-operative Difference payment at some level, highlighting existing efforts within the farming community. The discussion underscores the complexities and expectations surrounding sustainability initiatives in the dairy industry.
Nestle's offer is tied to Fonterra's Co-operative Difference framework, which outlines farming and business practices emphasizing quality, safety, and sustainability. The framework has three levels: the start, the mid-point, and the summit, with rewards for farmers meeting criteria across environmental, animal, people, community, milk, and co-op & prosperity focus areas.
Herrick suggests that Nestle should focus on addressing issues within its own operations before making such offers. He stated, "Nestle would do far better if it cleaned up its own backyard, instead of focusing on a country that is doing far better environmentally than its home base."
The agreement between Fonterra and Nestle comes a year after the unveiling of a partnership aimed at reducing on-farm emissions. Fonterra's recent commitment to being net zero by 2050, with 2030 targets including a 30% intensity reduction in on-farm emissions, adds context to the ongoing sustainability efforts.
Some Fonterra farmers have raised concerns about the additional workload around sustainability and whether it will result in a substantial premium for their milk. Following Fonterra's announcement of the Nestle premium, social media saw farmers expressing frustration at what they perceived as a meager offer.
Herrick acknowledges that there might be a reason for Nestle's small premium but refrains from commenting to avoid sounding conspiratorial. Fonterra clarified that a majority of its farmers already achieve The Co-operative Difference payment at some level, highlighting existing efforts within the farming community. The discussion underscores the complexities and expectations surrounding sustainability initiatives in the dairy industry.
