Customer 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.

* This includes peat and land-use change. In 2025/26, this is ≤ 710 kgco2e/Tonnes FPCM.

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.

These will be shared closer to the start of season, and we're currently taking farmer feedback inform what our future solutions could be.

In a recent pilot of this incentive, farmers were given subsidised access to animal health testing.

Achieve any level of the Co-operative Difference to get access.

They are likely to be partially funded, so that all farmers who achieve any level of the Co-operative Difference can benefit. We previously had a ballot system, and some farmers missed out. These incentives will be for all farmers meeting the criteria.

You won’t be penalised if you’ve already booked in one of these tools and services so, please don’t hold off booking in your herd improvement services or any other tools.

While the credit can’t be applied retrospectively (i.e. to tools or services already paid for), you’ll have a whole season to use your funding.