increase font size
Fonterra says customers and consumers have increasing expectations about the environmental impact their food leaves.
Fonterra says its global customers are seeking products perceived to be more environmentally friendly.
And customers are snubbing suppliers who do not meet their sustainability requirements.
“There are increasing expectations from customers and consumers about where their food comes from and the environmental impact it leaves,” Fonterra says.
The co-operative made the comments while responding to questions from the Fonterra Co-operative Council, which represents its shareholders.
The council released its quarterly update to members last month. The nine-page report looks at Fonterra’s performance and also contained Fonterra’s board’s response to three questions from the council.
One of the questions related to new and emerging challenges facing Fonterra and how the co-operative is handling these challenges.
Fonterra says it is making continued progress on its operational response – manufacturing decarbonisation plan and water treatment and efficiency upgrades.
It is also increasing R&D to look for solutions for the on-farm methane challenge.
It also continues to support and recognise farmers in managing their sustainability performance through the Co-operative Difference framework.
"Broadly, these challenges will be responded to by staying on strategy, focusing on our strengths and what's within our control," the co-op says.
"The strategy refresh recognises increasing consumer expectations around environmental performance and the increase in alternatives available to them.
"It also acknowledges the fast pace of change in people's nutrition consumption trends."
The co-operative is also maintaining a diversified portfolio in markets around the world.
Strategy Gets A Kick
Fonterra shareholders are strongly backing the co-operative’s new strategy to enhance the value of New Zealand milk.
The Fonterra Co-operative Council wrote to the board in September commending it for the recent progress.
“Our research indicates that 82% of our members are more comfortable with the overall direction of our co-op than they were two to three years ago,” the letter says.
“Complementing that data, we have accumulated considerable feedback that members are very supportive of the transformation in culture they have perceived within Fonterra.
“Our members have indicated they are comfortable with the new strategic focus on enhancing the value of New Zealand milk.”
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.
OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.
Fonterra has delivered a fifth straight year of record organic milk price for farmer suppliers.
Fonterra says favourable weather conditions supporting pasture growth is boosting milk production.
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. But they are heading to the world’s largest agricultural machinery event in Hanover next month with a degree of cautious optimism.
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make to the Australian and New Zealand agriculture, construction and forestry industries.
Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
