Globally Nestlé is investing billions of dollars in research to advance regenerative agriculture and reduce emissions, aiming to source 50% of its ingredients through regenerative agriculture methods by 2030. New Zealand is one of a host of countries in which the company has established pilot farms to test out country-centric solutions to the challenge.
Since December 2022 we've been working with Nestlé and Dairy Trust Taranaki to pilot emissions reduction solutions on Fonterra's 290ha demonstration farm in Whareroa, Taranaki and see if it can become the first commercially viable net zero carbon dairy farm in New Zealand within five to 10 years. Progress is going well in terms of finding ways to effectively reduce emissions, and also helping us with the things that don't work quite as well.
It's actually quite hard to reduce emissions and there is no silver bullet, but there are opportunities to tweak and optimise farm systems and make gains in the sustainability space. To date, the Net Zero Farm has demonstrated a 7% reduction in emissions intensity, which is huge.
Over the past 18 months the pilot farm has made some really big gains into reproductive performance, and how they manage their feed and supplementary feed. Doing things like re-optimising stocking rates, reducing the amount of supplement fed and using more maize silage and silage that they make on the farm.
They've also done some really interesting work in terms of the role of mixed species cultivars or alternative pasture species and the risks around climate adaptation in the future. The farm has discovered some novel mixes of herbs, brassicas, and forages that can meet supply and demand.
The farm is also testing out tech that could improve feed conversion efficiency and reproductive performance.
Insights from the pilot farm feed into another project underway under the partnership - the GHG Farmer Support Pilot, which involves around 100 farms nationwide. These farmers are provided with additional support to implement changes aimed at lowering their on farm greenhouse gas (GHG) emissions. This includes improved management of feed and pasture, on farm tree planting and enhanced milk production efficiency.
Farmers are always interested in what happens to their milk after it leaves the farm gate but it's fair to say not many understand the role of our large customers, which tend to have a functional relationship with the Co-op, not the farmers themselves. Nestlé has broken down this barrier with its investment in these pilot programmes and added incentives under The Co-operative Difference. This partnership has demonstrated that our customers are willing to partner with farmers and willing to invest in them and support them with their on farm emissions reductions and ensure farmers maintain their profitability and resilience. It's not just about setting a target, it’s about seeing it through - together.