Food and Beverage Business

Nestlé to increase sustainability payments to Fonterra farmers

Nestlé to increase sustainability payments to Fonterra farmers Fonterra, Nestlé Food and Beverage Business

Fonterra and Nestlé have entered into a partnership to drive sustainability goals and reduce on-farm emissions in the global dairy industry. This “deal agreed by Fonterra and Nestlé” is set to make a significant impact in the “food and drink consumer trends” landscape.

The agreement, outlined a year ago, involves multiple projects to achieve sustainability targets, with a particular focus on reducing on-farm emissions. One of the key areas of investment for Nestlé is to advance regenerative agriculture and reduce emissions, with a goal to source 50% of its ingredients through regenerative agriculture methods by 2030.

Under the terms of the agreement announced today (14 December), Nestlé will provide additional funding to farmers who achieve one of the three levels of Fonterra’s “The Co-operative Difference” framework during the 2023/24 season.

Fonterra CEO Miles Hurrell expressed delight in working with Nestlé to recognize farmers who are leading in industry best practice. This mutually beneficial partnership aims to “grow sustainably together” and produce lower carbon milk into the future.

Jennifer Chappell, CEO of Nestlé New Zealand, highlighted Nestlé’s commitment to supporting farmers and developing new economic opportunities, while also reducing greenhouse gas emissions. This move is expected to encourage greater action by farmers, researchers, and policymakers in support of a just transition for the dairy industry.

In line with its sustainability goals, Fonterra is aiming to be net zero by 2050, with specific targets set for 2030, including a 30% intensity reduction in on-farm emissions. The company’s “The Co-operative Difference” framework rewards farmers who meet specific criteria across areas such as environment, animals, and community.

Furthermore, Fonterra and Nestlé are spearheading initiatives to test solutions on a Fonterra-owned farm in Taranaki with the goal of becoming the first commercially-viable, net-zero carbon, dairy farm in New Zealand.

Additionally, Fonterra and Nestlé completed the sale of their DPA Brasil joint venture to French dairy company Lactalis, following a regulatory approval process.

This partnership between Fonterra and Nestlé is a testament to both companies’ commitment to driving sustainable practices in the food and beverage industry. With aligned goals and investments, the future of sustainable dairy production looks promising. This marks a significant step forward in addressing food and beverage industry trends and making a positive impact on the environment.

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