Fonterra, Mars Partner to Fund Farmer Emission Reductions

Fonterra has announced new financial incentives for dairy farmers to reduce on-farm emissions, set to take effect in the 2025/26 season starting this June. Under the updated Co-operative Difference framework, farmers can earn between 1 to 5 cents per kilogram of milk solids for meeting specific emissions criteria related to cow feed, fertilizers, and peat soils. This initiative is part of Fonterra's strategy to enhance sustainability and strengthen relationships with customers who prioritize environmentally friendly practices. Additionally, Fonterra is collaborating with Mars and Nestlé, who are contributing to the funding aimed at supporting these sustainability efforts. Mars has committed $27 million over five years to provide technology and cash rewards to farmers demonstrating significant climate efforts. Fonterra's CEO, Miles Hurrell, emphasized that these steps are crucial for achieving their emissions targets and delivering better returns for farmer shareholders.