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

Fonterra trims board size

Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.

Returns 'not good enough'

Fonterra leaders are making their case for offloading the co-operative's $3 billion consumer business, noting that its return on capital has been nowhere near respectable.

Record milk price!

A record farmgate milk price for Fonterra shareholders is all but confirmed for this season.

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

Featured

Massey Research Field Day attracts huge interest

More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.

National

OSPRI's costly software upgrade

Animal disease management agency OSPRI has announced sweeping governance changes as it seeks to recover from the expensive failure of…

Machinery & Products

BA Pumps expand

Cambridge based BA Pumps & Sprayers, specialists in New Zealand-made spraying equipment, has acquired Tokoroa Engineering’s product range, including the…

Entries open for innovation award

Fieldays and its renowned Innovation Awards are celebrating their 57th year, marking a longstanding tradition in the agricultural calendar, with…

» Latest Print Issues Online

Milking It

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

Not fair

OPINION: The Listener's latest piece on winter grazing among Southland dairy farmers leaves much to be desired.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter