Tuesday, 21 March 2023 09:55

Securing capital linked to emissions profile

Written by  Sudesh Kissun
Fonterra is making progress in work to transition its manufacturing sites out of coal by 2037. Fonterra is making progress in work to transition its manufacturing sites out of coal by 2037.

Fonterra says securing capital for future growth will depend on how its farmers manage emissions on-farm.

The co-operative plans to start discussions with farmer shareholders "about what a target will look like and how we'll get there".

Chief executive Miles Hurrell says having a target will help secure high value customers, enable the co-op and farmer owners to meet ongoing regulations as well as secure future finance.

Hurrell says there is "a strong pull" coming from customers, consumers and the capital market.

"Our access to the capital will be linked to how we are dealing with emissions on farm," he says.

Fonterra acknowledges making change on-farm is not easy.

Hurrell points out that the co-op currently has 18 methane-reduction projects underway and 30 active trials of potential solutions.

"These activities support us in building a stronger co-op for the future, and we'll be out talking about these topics over the coming months.

"As we've said earlier, we're well positioned to navigate the challenges we're currently seeing, while also looking out to the needs of our customers and consumers in the years ahead.

"This long-term view determines the steps we need to take today to ensure we continue to be a dairy provider of choice and strong co-op for generations to come."

The co-op is also investing in R&D and new technologies to help reduce emissions on-farm.

Projects underway include a new private-public partnership joint venture announced in November, through which Government and partners from across the food and fibre sectors will work together to reduce methane emissions.

Hurrell says the co-op is also making progress in work to transition its manufacturing sites out of coal by 2037.

"At our Waitoa site we're converting one of our boilers to wood biomass.

"Scheduled to be operating later this year, the new boiler will reduce the site's annual emissions by 48,000 tonnes of CO2e, the equivalent of taking 20,000 cars off New Zealand's roads."

More like this

Fonterra vote

OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.

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.

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.

Featured

Farewell Jim

In a few hundred words it's impossible to adequately describe the outstanding contribution that James Brendan Bolger made to New Zealand since he first entered politics in 1972.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Fonterra vote

OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.

Follow the police beat

OPINION: Politicians and Wellington bureaucrats should take a leaf out of the book of Canterbury District Police Commander Superintendent Tony Hill.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter