Fonterra FY26 Results: $9.69 Milk Price, $3.4bn Profit
Fonterra has unveiled its annual results for the 2026 financial year, posting $27 billion in revenue and close to $20 billion returned to New Zealand farmer owners and unit holders.
It builds on the co-operative's climate roadmap, with near-term emission reduction targets remaining a key part of the path towards their ambition to be net zero by 2050.
The roadmap is also important for Fonterra's global customers who recognise the inherent value of New Zealand's grass-fed dairy and are increasingly interested in the improvements the co-op is making across its supply chain.
Global customers are interested in the data and insights Fonterra can provide right down to an individual farm level, showing the hard work of its farmers.
Charlotte Rutherford, director of sustainability at Fonterra, told Dairy News that their commitment to sustainability remains strong.
Rutherford says the roadmap recognises the hard work their farmers do every day to care for the land, animals and environment that are the foundations of New Zealand's world-leading pasture-based farming.
"A huge thank you to our farmers, whose dedication and daily efforts underpin the path set out in this roadmap."
According to the refreshed roadmap, Fonterra is working alongside farmers to maintain high standards of animal wellbeing.
With high health and welfare standards, NZ cows live longer, productive lives.
The co-op says highly productive cows are essential for producing high quality milk.
"The way we farm in New Zealand means cows spend most of their time outdoors on pasture... This has positive animal health and wellbeing benefits for our cows."
On climate, Fonterra says reducing emissions remains a critical component of its climate action plan.
"However, we acknowledge that impacts of climate change are already being felt across the globe. This is why we are also considering how we adapt to climate change for the future of our co-operative."
Fonterra's 2026 emissions profile is made up of 4.5% scope one emissions - direct emissions from sources owned or controlled by the co-op.
Scope two - indirect emissions from the generation of purchased energy - makes up 1.5%.
Scope three is 94% and is mad up of indirect emissions Fonterra incurs outside its ownership, primarily from farming activities.
The co-op says its net zero 2050 ambition is supported by eliminating remaining coal as an energy source in its operations by 2037.
On farming emissions, Fonterra notes that the same pasture-based system that helps them create grass-fed dairy products also presents unique challenges when it comes to reducing on-farm emissions.
The co-op acknowledges that progress with its on-farm emissions intensity reduction target has been challenging.
It is inventing in on-farm tools and services to strengthen on-farm decision making, while also preparing to adopt novel technologies as they become commercially available.
On nature, Fonterra says the significance of 'natural decline' (environmental degredation) is becoming a global focus.
"Key markets like Europe and Asia are advancing disclosure requirements relating to nature which will impact companies selling goods and services into these regions."
