Wednesday, 09 November 2011 14:59

Oz carbon tax will raise power bills – Fonterra

Written by 

THE AUSTRALIAN Government's carbon tax will increase electricity costs by about $A3000 per farm, says Fonterra's consumer business managing director John Doumani.

Fonterra has asked the Federal Government for more help for farmers making a transition to low-carbon technologies.

"The reality is dairy farmers engage in energy-intensive processing, so they should be eligible for funding to help them adapt," Doumani last month told a meeting at the Rural Press Club of Victoria.

"We've been talking to the Government about the special needs of dairy farming and so far they're receptive. The biggest likely impact of carbon pricing for dairy farmers will be electricity price increases.

"We expect the Government's carbon pricing will have a direct impact of about $3000/dairy farm/year in increased electricity costs."

Fonterra will help its suppliers identify ways to reduce electricity use on-farm in preparation for the carbon tax, Doumani says.

"We accept a low-carbon future is inevitable and a challenge we have to face. It's also an opportunity to innovate, invest and drive for a more competitive future. We have [made plans] to reduce carbon emissions in our manufacturing operations, and now we're turning our attention to how we can help our farmer suppliers."

Fonterra has published a farmers' guide to managing the electricity cost increases of carbon pricing. It covers key areas of farm electricity use and helps farmers assess their operations. It's a start, Doumani says. The co-op has been talking to its Australian suppliers about sustainability.

"They tell us they want to operate a sustainable business and reduce carbon emissions, especially in light of the [extra costs] associated with the carbon pricing. But they don't know how to do it or fund it.

"They want independent advice from someone who understands dairying to tell them what technologies to employ.

"Farmers are wary of 'snake-oil' salesmen knocking on their doors offering dubious solutions. They're concerned about unproven technologies and capital costs."

The guide includes a calculator to help farmers consider their likely electricity bill increases and a self-assessment tool to help them understand how their operation rates against best practice electricity usage.

Fonterra will also run information sessions for farmers and provide expertise to help with on-farm assessments.

More like this

Strange bedfellows

OPINION: Two types of grifters have used the sale of Fonterra's consumer brands as a platform to push their own agendas - under the guise of 'caring about the country'.

Featured

US removes reciprocal tariff on NZ beef

Red meat farmers and processors are welcoming a US Government announcement - removing its reciprocal tariffs on a range of food products, including New Zealand beef.

India-New Zealand free trade agreement (FTA) dairy outcomes

OPINION: As negotiations advance on the India-New Zealand FTA, it’s important to remember the joint commitment made by Indian Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon at the beginning of this process in March: for a balanced, ambitious, comprehensive, and mutually beneficial agreement.

Honesty vital in flood insurance claims, says IFSO

As New Zealand experiences more frequent and severe flooding events, the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) is urging consumers to be honest and accurate when making insurance claims for flood damage.

National

Machinery & Products

New pick-up for Reiter R10 merger

Building on experience gained during 10 years of making mergers/ windrowers, Austrian company Reiter has announced the secondgeneration pick-up on…

» Latest Print Issues Online

Milking It

Remembering Bolger

OPINION: Is it now time for the country's top agricultural university to start thinking about a name change - something…

Time for action

OPINION: If David Seymour's much-trumpeted Ministry for Regulation wants a serious job they need look no further than reviewing the…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter