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Co-op farmers make most of customer-funded sustainability solutions

  • Your Co-op
  • Sustainability

Funding for Fonterra’s customer-funded On-farm Solutions programme for 2025/26 has been fully allocated, with thousands of Co-op farmers participating in the initiative.

Launched last year following investments through separate agreements with Co-op customers Mars and Nestlé, the programme saw farmers applying for up to $1,500 in solutions that drive efficiency gains and help reduce emissions intensity.

Around 7,100 applications were made across two rounds of funding.

Group Director for Fonterra Farm Source Anne Douglas says it was encouraging to see farmers embrace the initiative.

“We’re really pleased with the enthusiasm of farmers in taking simple, effective actions that will have a positive impact across their farms,” Anne says.

“With the backing of Mars and Nestlé, we’ve been able to offer a range of practical tools, allowing farmers to choose solutions that best fit their needs while they help build a more sustainable future for New Zealand dairy.”

The solutions offered in the first round of funding were selected based on farmer feedback plus factors such as accessibility, ease of use and effectiveness in achieving efficiency gains. These included animal performance tools from LIC and CRV, as well as pasture and data optimisation tools and on-farm planting to improve carbon sequestration.

The solutions available in the second round were focused on pasture optimisation apps and on-farm planting, Anne says.

“These initiatives will help farmers achieve even greater operational efficiencies and reduce emissions intensity, which will also contribute to the Co-op’s on-farm emissions target.”

The programme is part of a wider package of customer incentives announced in 2025, funded through separate agreements with Mars and Nestlé. Any farms that achieve the Co-operative Difference this season have had an opportunity to apply for the funding.

Separate to the on-farm solutions detailed above, the Co-op has introduced an Emissions Excellence achievement payment of between 1-5 cents per kgMS for farms that meet certain criteria.

The funding from the Co-op’s separate agreements with Mars and Nestlé will also be used for an extra 10-25 cents per kgMS payment for farmers who achieve the Co-operative Difference and have one of the lowest emissions footprints in the Co-op for the 2025/26 season. It’s estimated between 300-350 farms will be eligible for this payment.