Thursday, 25 February 2021 16:25

Fonterra unveils premium milk payment details

Written by  Staff Reporters
Fonterra has unveiled its plan for how much farmers will be paid for sustainable high quality milk. Fonterra has unveiled its plan for how much farmers will be paid for sustainable high quality milk.

Fonterra has released details of how it will pay farmers for producing sustainable, high quality milk as part its Co-operative Difference programme.

From 1 June 2021, up to 10 cents of each farm’s milk payment will be determined by the farm’s sustainability credentials and milk quality.

“Fonterra farmers are already among the world’s best in these areas and we’re really proud of that. The Co-operative Difference payment is another way we can recognise farmers, while also supporting our strategy to grow the value of our New Zealand milk by responding to increasing demand around the world for sustainably produced dairy,” says Richard Allen, group director Farm Source.

Allen says the new payment will recognise farmers who have already innovated and invested early while offering farmers more encouragement to take further steps required to meet consumer expectations.

“We want to reward the on-farm efforts that demonstrate our Co-op’s care for the environment, animals, people and communities. It’s these actions which help ensure we’re the dairy company of choice for customers around the world and for New Zealand dairy farmers, for generation to come.”

The 10 cent Co-operative Difference payment is made up of:

  • 7 cents/kgMS for achievement under the Environment, Co-op & Prosperity, Animals, and People & Community focus areas.

Once these have been achieved:

  • 3c/kgMS for milk that meets the ‘Excellence’ standard under the Milk Quality framework.

While The Co-operative Difference framework was introduced in 2019, the milk payment is new to farmers.

More like this

Featured

Farmers urged not to be complacent about TB

New Zealand's TBfree programme has made great progress in reducing the impact of the disease on livestock herds, but there’s still a long way to go, according to Beef+Lamb NZ.

Editorial: Making wool great again

OPINION: Otago farmer and NZ First MP Mark Patterson is humble about the role that he’s played in mandating government agencies to use wool wherever possible in new and refurbished buildings.

National

Lame stories from a country vet

Everyone from experienced veterinarians and young professionals to the Wormwise programme and outstanding clinics have been recognised in this year’s…

Machinery & Products

Amazone extends hoe range

With many European manufacturers releasing mechanical weeding systems to counter the backlash around the use and possible banning of agrochemicals,…

Gong for NH dealers

New Holland dealers from around Australia and New Zealand came together last month for the Dealer of the Year Awards,…

A true Kiwi ingenuity

The King Cobra raingun continues to have a huge following in the New Zealand market and is also exported to…

» Latest Print Issues Online

Milking It

Greenpeace a charity?

OPINION: Should Greenpeace be stripped of their charitable status? Farmers say yes.

Synlait's back

OPINION: After years of financial turmoil, Canterbury milk processor Synlait is now back in business.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter