Tuesday, 09 March 2021 11:55

Clean and green to pay?

Written by  Sudesh Kissun
Fonterra's group director Farm Source, Richard Allen. Fonterra's group director Farm Source, Richard Allen.

Fonterra says there is a genuine understanding among farmer shareholders about the global demand for sustainably produced dairy.

The co-operative’s group director Farm Source, Richard Allen, says Fonterra’s competitors in the US and Europe are bolstering their environmental credentials.

He was commenting on the launch of details of how the co-op will pay farmers for producing sustainable, high quality milk as part of the ‘co-operative difference’ framework.

From June 1, 2021, up to 10 cents of each farm’s milk payment will be determined by the farm’s sustainability credentials and milk quality.

The 10c/kgMS ‘co-operative difference’ payment is made up of two parts: 7c/kgMS for achievements under environment, co-op & prosperity, animals, and people & community focus areas.

Once these targets are achieved, another 3c/kgMS will be awarded to farmers who meet the ‘excellence’ standard under the milk quality framework.

Allen says the payment is another way Fonterra can recognise farmers.

“We want to reward the on-farm efforts that demonstrate our co-op’s care for the environment, animals, people and communities. It’s these actions which help ensure we’re the dairy company of choice for customers around the world and for New Zealand dairy farmers, for generations to come,” says Allen.

More like this

Price cut coming?

OPINION: Dipping global dairy prices have already resulted in Irish farmers facing a price cut from processors.

Sugar hit

OPINION: Winston Peters has described the decision to sell its brand to Lactalis and disperse the profit to its farmer shareholders as a 'short sighted sugar hit'.

Featured

Te Radar celebrates kiwi farming heritage in latest release

Undoubtedly the doyen of rural culture, always with a wry smile, our favourite ginger ninja, Te Radar, in conjunction with his wife Ruth Spencer, has recently released an enchanting, yet educational read centred around rural New Zealand in one hundred objects.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Political colours

OPINION: Your old mate welcomes the proposed changes to local government but notes it drew responses that ranged from the reasonable…

True agenda

OPINION: A press release from the oxygen thieves running the hot air symposium on climate change, known as COP30, grabbed your…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter