Why Fonterra accepted defeat in the dairy aisle
OPINION: Fonterra's sale of its consumer dairy business to Lactalis is a clear sign of the co-operative’s failure to compete in the branded consumer market.
Simply Milk, a joint project between Fonterra and Foodstuffs North Island, hit supermarket shelves last week. It is now available in New World, Pak’n’Save and Four Squares in the North Island.
Simply Milk has been certified carbonzero through the purchase of carbon credits from Toitū Envirocare, a wholly-owned subsidiary of Manaaki Whenua – Landcare Research, a Government-owned crown research institute. The carbon credits relate to projects undertaken both in New Zealand and overseas. These have then been used to offset the carbon emissions of making the milk.
Carolyn Mortland, director global sustainability at Fonterra, says Simply Milk is a good example of how co-op’s strategy is putting sustainability at the heart of everything it does.
“With Simply Milk we have a practical way to demonstrate their support for the environment,” she claims
“It will enable us to support the regeneration of 7.5 square kilometres of native forest near Kaikoura, as well as renewable energy programmes in overseas markets where Fonterra sells its products.”
Foodstuff’s Chris Anderson says it’s becoming increasingly important to customers to know where their food comes from and that it’s being produced sustainably.
“It’s really exciting to be bringing this first to New Zealand. Simply Milk offers customers the opportunity to purchase their everyday milk and know their choice is making a difference to something that’s really important to them,” says Anderson.
Toitū Envirocare chief executive Becky Lloyd says the carbonzero accreditation process firstly evaluates the carbon emissions of making the milk, right from the farm via store fridge to the customer’s home. The product’s footprint includes farming, production, distribution – as well as eventual consumption and disposal.
Fonterra and Foodstuffs North Island then worked with Toitū to identify projects to offset the emissions.
“We apply a thorough set of principles to determine if a given carbon credit project is real, reliable and meets our quality standards,” says Lloyd.
“Reaching net zero by 2050 requires all New Zealand businesses to start measuring and reducing their emissions now.”
