increase font size
Fonterra Co-operative Council chair John Stevenson says scope three emissions target is not something on the minds of shareholders right now.
Fonterra is getting a clear message from farmer shareholders - don't burden them with new requirements and costs.
With the forecast milk price falling, soaring interest rates and higher than normal input costs, farmers are in no mood right now to face scope three emissions target, first flagged by Fonterra at its last annual meeting in November.
The scope three targets relates to emissions behind the farmgate. Fonterra is under increasing pressure from major customers like Nestlé to improve its scope three emissions profile.
The co-operative had initially planned to release its scope three target in June.
Fonterra Co-operative Council chair John Stevenson told Dairy News that a scope three emissions target is not something on the minds of shareholders right now.
Stevenson says things are tough on farm right now, from weather through to the current financial situation.
"Many of our farmers are still flat out calving so a scope three emissions target and what it may mean for them is far from their minds," he says.
Asked if the time is right for Fonterra to introduce scope three target, Stevenson says it depends on what farmers will be required to do.
"Council has no visibility of when the target will be released, and what will be required on farm.
"Council will be in a position to comment further once we have more clarity."
Federated Farmers dairy section chair Richard McIntyre wants the co-op to make things easy for farmers.
"I'm not going to tell Fonterra how to run their business - they're much close to the customer than I am and at the end of the day, they need to be able to make business decisions based on the information they have in front of them," he told Dairy News.
"But what I will say as a Fonterra supplier is that if they are going to be putting new requirements or costs on farmers, they better be bloody sure they really are necessary.
"There's a lot of pressure out there at the moment, and some farmers are really hurting, so thye need to make things as easy and cost effective as they can for farmers."
Fonterra has warned that if farmers fail to address scope three emissions, major customers could look elsewhere for products and even switch to plant-based dairy.
Stevenson points out that decisions around scope three sit squarely with the board and management.
"We have conveyed to the board the current tough situation on-farm now, and are here to represent the views of our farmers.
"Once we have an idea of the on-farm inpact of any scope three announcement, we will be able to comment further."
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.
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.
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.
Fonterra has delivered a fifth straight year of record organic milk price for farmer suppliers.
Fonterra says favourable weather conditions supporting pasture growth is boosting milk production.
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. But they are heading to the world’s largest agricultural machinery event in Hanover next month with a degree of cautious optimism.
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make to the Australian and New Zealand agriculture, construction and forestry industries.
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.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
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.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.
OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…
