Friday, 15 December 2023 10:05

Farmer tells Nestle to clean up its backyard first

Written by  Sudesh Kissun
Jason Herrick Jason Herrick

A Southland dairy farmer is questioning Nestle’s offer of a small milk price premium for farmers who meet quality, safety and sustainability targets set by Fonterra.

Jason Herrick says an additional payment of just 1-2c/kgMS doesn’t make financial sense for farmers.

“As far as the offer goes, most farmers would have to invest a significant amount just to get that premium,” Herrick told Rural News.

“So, therefore it doesn't make good financial sense to do so. If you are going to dangle a carrot, make sure it is something descent to encourage change or what is going to be the actual beneficial outcome: zero.”

Global food giant Nestle will provide Fonterra farmers who achieve one of the three levels of Fonterra’s The Co-operative Difference framework during the 2023/24 season. The Co-operative Difference framework sets out the farming and business practices that will help farmers to stay at the forefront, such as quality, safety, and sustainability.  It has three levels: the start, the mid-point, and the summit. The framework also rewards farmers that meet certain criteria across five focus areas – environment, animals, people & community, milk, and co-op & prosperity.

The agreement between Fonterra and Nestle comes one year on from the unveiling of a partnership designed to help reduce on-farm emissions. Fonterra recently announced an ambition of being net zero by 2050, with 2030 targets including a 30% intensity reduction in on-farm emissions.

Some Fonterra farmers have questioned whether the extra work around sustainability will result in premium payment for their milk. After Fonterra’s announcement of the Nestle premium, some farmers took to social media expressing anger at the paltry offer from Nestle.

Herrick says he believes there will be a reason Nestle offered the small premium “but don't want to comment as it may sound like a conspiracy to some”.

“Nestle would do far better if it cleaned up its own back yard, instead of focusing on a country that is doing far better environmentally than its home base.”

Editor's note: Fonterra has clarified that a majority (83% 2022/23 and 72% 2021/22) of its farmers already achieve The Co-operative Difference payment at some level.

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

Winter grazing warning

Every time people from overseas see photographs of cows up to their hocks in mud it's bad for New Zealand.

ANZ defends farm lending rates

The country's largest lender to the agriculture sector says it's not favouring home loans over farm and business lending.

Machinery & Products

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…

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…

» Latest Print Issues Online

The Hound

Review SOEs!

OPINION: NIWA has long weathered complaints about alleged stifling of competition in forecasting, and more recently, claims of lack of…

Bank reset

OPINION: Adding to calls to get banks to 'back off', NZ Agri Brokers director Andrew Laming has revealed that the…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter