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Prime Minister Jacinda Ardern and Fonterra chair Peter McBride during the net zero farm launch at the National Fieldays.
Fonterra and Nestle are planning to develop a commercially viable net zero carbon emissions dairy farm.
The five year project, run with co-partner Dairy Trust Taranaki, will examine all aspects of farm operations to reduce carbon with the aim of cutting emissions by 30% by mid 2027, and a 10 year ambition of reaching net zero carbon emissions.
Prime Minister Jacinda Ardern launched the project at the National Fieldays two weeks ago.
The demonstration farm at the centre of the project is a 290 hectare property surrounding Fonterra's Whareroa site.
Dairy Trust Taranaki will work with Fonterra and industry partners to reduce total emissions on the farm, including methane, with successful solutions also being good for the farmer, good for the cow and good for the milk.
Lessons learned and activities will be shared through open days with farmers, who can then adopt the techniques and technologies most appropriate for their own farms. The practices must be economically viable and practical for farmers to adopt.
Fonterra chief executive Miles Hurrell says the collaboration will help both Fonterra and Nestle accelerate progress towards their greenhouse gas emission goals.
"New Zealand already provides some of the most sustainable nutrition in the world through its pasture-based dairy system," he says.
"This new partnership will look at ways to further reduce emissions, increasing the country's low-emissions advantage over the rest of the world."
Part of Fonterra's strategy is to lead in sustainability and the co-op aspires to be net zero by 2050.
"We know we will make bigger gains, for both the co-op and country, by partnering with others," says Hurrell.
"Working with partners such as Nestle is our best opportunity to create innovative solutions to local and global industry challenges.
"As well as our own goals, it's important we help our customers achieve theirs.
"Nestle has ambitious plans and we look forward to working together to discover systems that could help our farmer owners to continue to build on the already good base they have."
The partnership between Fonterra and Nestle also encompasses the launch of a greenhouse gas farmer supprt pilot programme.
This multi-year project will see enrolled Fonterra supplying farms get additional support to implement changes aimed at lowering their on-farm emissions, which could include solutions such as improved management of feed and pasture and enhanced milk production efficiency.
The opt-in pilot will start with around 50 farms and then be scaled up over the next three years.
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