Extra payment on offer again to farmers thanks to Nestlé partnership
Nestlé is again this season offering an additional 1-2 cent payment to Fonterra farmers who achieve The Co-operative Difference.
The payment was first offered to the Co-op’s farmers in the 2023/24 season for achieving any of the three levels of The Co-operative Difference framework.
The final amount is calculated based on the number of farmers who achieve The Co-operative Difference. Fonterra expects this to be about 1-2 cents per kilograms of milk solids, and it’s paid in the final milk payment.
The three levels include Te Pūtake (The starting point), Te Puku (The mid-point) and Te Tihi (The summit of the mountain).
Charlotte Rutherford, Fonterra’s Director of Sustainability, says the extra payment from Nestlé shows customer support for sustainable action continues to grow.
“Our partnership with Nestlé provides direct support to farmers to help them meet our Co-op targets, while at the same time giving Nestlé confidence that we are helping them achieve theirs.”
Fonterra first announced its partnership with Nestlé in 2022. Today, it includes multiple projects designed to support farmers with their sustainability actions.
“We’ve made a strategic choice to be a leader in sustainability, and collaborating with high-value customers like Nestlé is a great way to accelerate progress,” says Rutherford.
Aside from the extra 1-2 cent payment, there’s also a Net Zero Dairy Farm Pilot, a GHG Farmer Support Pilot project, and an On-farm Tree Planting programme.
We believe collaboration of this kind, where Nestlé can work with suppliers like Fonterra to support farmers to reduce on-farm emissions, will be key in the future of farming.
“We’re pleased with the progress to date, but there’s more work to do on these multi-year projects. We look forward to strengthening our relationship with Nestlé to drive innovations and reduce on-farm emissions.”
Nestlé Oceania Director Corporate Affairs and Sustainability Margaret Stuart says the company is pleased to see the ongoing commitment of farmers to continually improve the sustainability of their farming.
“We’re looking forward to contributing to the work as it unfolds,” says Stuart.
“We believe collaboration of this kind, where Nestlé can work with suppliers like Fonterra to support farmers to reduce on-farm emissions, will be key in the future of farming.”
Fonterra has an ambition of being net zero by 2050, with 2030 targets including a 30% intensity reduction in on-farm emissions.
Globally, Nestlé is investing 1.2 billion Swiss Francs (NZD2.25 billion) by 2025 to advance regenerative agriculture and reduce emissions, aiming to source 50% of their ingredients through regenerative agriculture methods by 2030.