WHY ARE CUSTOMERS FUNDING THIS
We've made a strategic choice to focus on sustainability, to help us achieve the best possible access into premium international markets and to partner with customers that recognise the value of your milk.
Your Co-op has negotiated these incentives in-line with these strategic choices, from our highest value customers.
This value is direct recognition of the hard work already put in to improve emissions efficiencies, and to support further gains.
WHAT ARE THE INCENTIVES
This reward will be available to farms that have one of the lowest footprints in the Co-op* – an assessment that is made at the end of the season. Eligible farms will need to have a full verification of their records by the end of 2026 by Fonterra or one of its third-party assessors. Once verification confirms records are accurate, farmers will be paid the following month.
* This includes peat and land-use change. In 2025/26, this is ≤ 710 kgco2e/Tonnes FPCM.
The emissions created from your farming activities, minus carbon removals, plus emissions from peat soils and land-use change.
We've sent you a report, via email, that shows you the current range we have for you. This can also be found on the Farm Source website.
Lower net footprint milk is attractive to customers, and helps to raise the value of all Fonterra milk by keeping our Co-op competitive. Those farmers who have a low footprint are helping to attract and retain high-value customers, which benefits everyone. Customers are giving the Co-op this money as an extra payment for those farmers.
Fonterra uses two sources of information which are both data sets managed by Manaaki Whenua – Landcare Research for the soils type data: the Fundamental Soil layer, and the more detailed S-maps. Emissions factors from the NZ GHG Emissions inventory are used to calculate the emissions from these soils.
Your farm boundary file from your Farm Environment Plan is used to understand which soils are on your farm.
First thing is to check the farm map and soil information we have for your farm is correct. Currently all peat soils are treated the same way in the NZ GHG inventory. Wetland restoration or planting in an option for marginal or low-lying grazing areas.
Estimating land use change emissions involves several steps. Farm boundary, satellite imagery and historic aerial photography are used to determine when a deforestation event occurred. Then we account for the carbon lost by removing these trees, and this is spread out over a 20-year responsibility window.
Yes. Fonterra are required to track and report conversions from forestry into grassland on both the milking platform and support land.
If the support land you use is not covered by your Farm Environment Plan, then we assign defaults based on national estimates of historical deforestation.
There are plenty of avenues to help you:
The solutions on offer for this season include Animal-focused performance technologies, a genetic gain pilot programme, and planting to support environmental outcomes on farm.
Achieve any level of the Co-operative Difference to get access.
Funding is set at a capped amount, with solutions likely being partially funded.
Solutions already in use can be funded once their use has been verified, if the solutions were purchased with in the current season. The solutions on offer for this season include Animal-focused performance technologies, a genetic gain pilot programme, and planting to support environmental outcomes on farm.
HELP AND SUPPORT
THE CO-OPERATIVE DIFFERENCE
Achieve any level of the Co-operative Difference (starting with Te Pūtake), and meet the incentive specific criteria above.
