Tuesday, 03 July 2012 10:55

Fonterra welcomes ETS changes

Written by 

Fonterra has welcomed Government announcements on the 2011 Review of New Zealand's Emissions Trading Scheme, while restating its commitment to emissions reductions.

"We recognise that climate change is real and that global emissions must be reduced. Fonterra will continue to target a 20% reduction in emissions intensity right across its supply chain by 2020," says Fonterra's Group GM Global Sustainability, Bruce Donnison.

"But at the same time, we have been concerned that applying additional carbon costs on agriculture here, when they are still not faced by the majority of producers elsewhere in the world, simply undermine the competitiveness of the New Zealand agricultural sector - our most important export sector."

He says with current global financial conditions, the decision to hold the one for two obligations (one New Zealand Unit for every two tonnes of emissions) was timely, particularly given the agricultural sector's consistent and considerable contribution to exports. It also recognised New Zealand's comparative efficiency in producing low carbon food for a growing global population.

Donnison stressed the review would not be taken as a signal to ease up on efforts to mitigate agricultural emissions.

"The bulk of emissions are on farm and we need to tackle them there. We have consistently held the view that providing information and supporting our farmers to reduce emissions will always have more impact than increasing carbon costs.

"Our farmers have contributed nearly a quarter of the $43 million being invested by New Zealand in mitigation research and want practical solutions. This work will continue, as will the efforts being made in Fonterra's milk processing plants to drive down emissions, especially through energy efficiency."

Donnison says New Zealand Fonterra dairy farmer suppliers were already directly paying their way in the ETS, with $3,700 a year in carbon costs for fuel, energy and their share of the carbon costs being paid by Fonterra for processing emissions. This compares to a typical household's costs of around $133 a year.

"Without the decisions announced today, and if prices rose back to the expected $25 per New Zealand Unit, the ETS would have cost the average dairy farmer $8000 per annum from 2015."

More like this

Winston Peters questions Fonterra divestment plan

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.

Ripe Wanaka named NZ’s top sustainable event

The waste-free Ripe Wanaka Wine and Food Festival won Sustainability Event of the Year at the New Zealand Events Association Awards this year, while Festival Director Nathan White was named Emerging Event Professional of the Year.

Editorial: A new era for two co-ops

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.

Should co-op sell its consumer brands?

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.

Featured

'One more push' to eliminate FE

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.

Winston Peters questions Fonterra divestment plan

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.

National

Machinery & Products

New McHale terra drive axle option

Well-known for its Fusion baler wrapper combination, Irish manufacturer McHale has launched an interesting option at the recent Irish Ploughing…

Amazone unveils flagship spreader

With the price of fertiliser still significantly higher than 2024, there is an increased onus on ensuring its spread accurately at…

» Latest Print Issues Online

Milking It

Tough times

OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.

MSA triumph

OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter