Dairy giants plan NZ’s first net-zero farm

Fonterra, Aotearoa’s largest milk processor, is partnering with its global ingredients customer, Nestle, to develop New Zealand’s first commercially viable net-zero carbon emissions dairy farm in Taranaki.

The project will be based at a 290ha farm surrounding Fonterra’s Whareroa site, and run with Dairy Trust Taranaki, with the aim of cutting emissions by 30% by mid-2027, and reaching net zero carbon emissions in 10 years.

Fonterra told farmers last month that it was looking to set a target for Scope 3 carbon emissions, which would include farm emissions, warning that it risked losing customers and facing trade barriers in its overseas markets if it didn’t meet sustainability expectations.

Announcing the partnership at Fieldays in Hamilton yesterday, Fonterra chief executive Miles Hurrell said the collaboration with Nestle would help to accelerate progress towards their greenhouse gas emission goals, with both companies aiming for net-zero emissions by 2050.

‘‘We know we will make bigger gains, for both the co-op and country, by partnering with others,’’ Hurrell said. ‘‘Working with partners such as Nestle is our best opportunity to create innovative solutions to local and global industry challenges.’’

Lessons learned from the demonstration farm would be shared at open days with farmers, who could then adopt the techniques and technologies most appropriate for their farms. The practices had to be economically viable, practical for farmers to adopt, and good for the cows and milk, Hurrell said.

As well as Fonterra achieving its own goals, it was important to help its customers achieve theirs.

Nestle New Zealand chief executive Jennifer Chappell said the Taranaki farm would build on Nestle’s work around the world to help transform the dairy industry.

‘‘Dairy is our single biggest ingredient, and our vision is that the future for dairy can be net zero,’’ Chappell said. ‘‘To reduce our Scope 3 emissions, it’s critical we work with dairy farmers and their communities.’’

Nestle, the world’s largest food and beverage company, had more than 100 pilot projects with partners around the world, with 20 farms already aiming towards net-zero emissions, she said.

The partnership between Fonterra and Nestle includes a greenhouse gas farmer-support pilot programme that will give Fonterra supplier farms support to implement changes aimed at lowering on-farm emissions. Solutions could include better feed and pasture management and more efficient milk production.

‘‘Our vision is that the future for dairy can be net zero.’’ Jennifer Chappell

Nestle New Zealand chief executive