This has put the Co-op at an advantage when it comes to selling your milk. But we need to continue to protect and build on this position to stay competitive.
Improved access to markets and customers
Globally, customers are moving quickly when it comes to sustainability, and we need to stay ahead of the game. A year ago, only 11% of our customers had emissions targets. This has now increased to 20% and the figure continues to grow. Many of our largest customers have set ambitious climate related targets aiming to be net zero by 2050 including Nestlé, Mars, and Yum!.
Nestlé, Mars, and Starbucks are also targeting a 50% absolute reduction by 2030, Yum! is targeting a reduction in its Scope 3 emissions intensity by 46% by 2030, and Unilever is looking to be net zero by 2039.
To achieve their targets over the coming years, these customers will increasingly rely on ingredients providers who are actively working on lowering their emissions. We need to ensure the Co-op continues to meet their needs, so we can remain a preferred supplier. Our sustainability-focused customers typically pay Fonterra a premium for our credentials and value-added products. If we do not sell to them, that volume of milk would be diverted into our commodity products, which attract less of a price premium.
To achieve a collective result, we need individual action
Co-op farmers are already making steady progress lowering emissions through on farm efficiencies and continuing to adopt best practice farming.
Options to reduce and mitigate on farm emissions for each farm will vary depending on factors such as the farm system and location, but all reductions – big or small – across different farming operations will help us achieve this collective target. The more efficient your farm is and the healthier your cows are, the lower your emissions tend to be.
“We recognise that many farmers are already on their way to meeting emissions requirements. No matter where you are on your journey, Fonterra and Farm Source are here to help with our on-farm support teams,” says Fonterra Programme Manager (Environment) Talia Grala.
“The most useful tools at a farmers’ disposal are Farm Environment Plans, Farm Insights Reports, and the Dairy Diary app. The Farm Insights Report provides you with farm specific greenhouse gas data, and this is the first step in understanding your farm’s emissions profile. They also identify efficiency opportunities such as potential improvements in fertiliser optimisation, lowering somatic cell count, and reducing animal health events by benchmarking performance relative to similar farms. These all have co-benefits for reducing the on-farm greenhouse gas footprint and adding value to our products and market. The more efficient your farm is, the more profitable it will be.
“The Dairy Diary app is a good way to record animal treatments, feed, fertiliser and effluent applications, agrochemical spraying, grazing and monthly hygiene checks.”
There are lots of ways you can get started
Visit Fonterra to read more about our emission approach and what it means for you.
If you’re keen to understand opportunities that could exist on your farm, have a look at your Farm Insights Report, or get in touch with your local Farm Source team with any questions you might have.