Global Dairy Giant Adopts 30 Percent ‘Intensity Emissions’ Reduction Target

Fonterra rolls out new carbon emission target amid pressure to decarbonise from markets.

Fonterra in Auckland, New Zealand, on Dec. 1, 2017. Hannah Peters/Getty Images

Global dairy co-operative Fonterra has stepped up its transition to net zero by adopting a new “on-farm” emissions reduction target.

The co-operative, which is a major global dairy exporter and owns many popular dairy brands in Australia and New Zealand, such as Western Star, Perfect Italiano, Bega Cheese, Anchor, Anmum, and De Winkel, announced on Nov. 9 that it wanted to achieve a 30 percent intensity reduction in on-farm emissions by 2030.

The new “intensity” target is not an overall reduction target that is often promoted by other companies but rather something linked to some economic output.

In Fonterra’s case, the co-operative seeks to cut 30 percent of carbon emissions for each tonne of fat and protein-corrected milk collected by its farms.

Pressure to Decarbonise

Fonterra explained that 86 percent of its emissions came from on-farm activities, prompting the need for an intensity reduction target.

Fonterra CEO Miles Hurrell also said the co-operative needed to keep making progress to ensure it would not “fall behind” in the race against carbon emissions.

“As a dairy partner to many of the world’s leading food companies, we’re responding to growing sustainability ambitions from our customers and financial institutions, along with increasing market access, legal, and reporting obligations,” he said in a statement.

“Our collective efforts to reduce emissions … will help future-proof Fonterra, supporting our ambition to be a long-term sustainable co-op for generations to come.”

Fonterra CEO Miles Hurrell speaks at the Chinese Business Summit in Auckland, New Zealand, on July 20, 2020. Hannah Peters/Getty Images

Fonterra elaborated that it could achieve the new target via a number of measures, including best farming practices (such as improving feed quality and herd performance), new technologies, carbon removals from existing and new vegetation, and historical land-use change conversions to dairy.

Meanwhile, Fonterra Chairman Peter McBride said the new emissions reduction target was a collective one and would affect each farm differently.

“There is significant variation within and across farming systems when it comes to emissions intensity,” he said.

“There’s no one solution to reducing on-farm emissions. It will require a combination of sharing best farming practices and technology to reduce emissions–it’s both our biggest opportunity and our biggest challenge.”

While expressing “deep empathy” for the challenges faced by the farmers, the chairman promised that Fonterra would work alongside and “not against” them in progressing toward the emissions target.

Apart from the new target, Fonterra also launched its climate roadmap, outlining the company strategies to achieve its ambitious net zero plan by 2050.

Climate Group Says New Target Is Not Enough

Following Fonterra’s announcement, Greenpeace Aotearoa, an environmental organisation, criticised the co-operative’s climate roadmap, saying it contained no real measures to reduce emissions.

Accusing Fonterra of being New Zealand’s biggest climate polluter, Greenpeace Aotearoa campaigner Christine Rose expressed her dissatisfaction with the co-operative’s efforts to reduce carbon emissions.

“After decades of delay and denial, it’s about time Fonterra took responsibility for its impacts on climate change. But with the scale of the industry pollution and impacts of climate change, Fonterra’s plans are woefully insufficient,” she said.

“It’s one thing to announce on-farm emissions reduction targets in response to market demands, but without concrete action, targets are meaningless.”

Ms. Rose also called on Fonterra to cut its dairy herd to “protect rivers, drinking water, and the climate.”

New Zealand’s Proposed Flatulence Tax

Despite being a significant contributor to New Zealand’s economy, the dairy industry has faced challenges in recent years due to the government’s push for net zero.

In October 2022, the then-Labor government announced a proposal to impose taxes on greenhouse gasses that farm animals emit as part of burping and urinating.

At the time, the New Zealand government argued that the proposed tax was good for the environment and the economy and an excellent opportunity for farmers.

The move angered the farmer community across the country and sparked fierce criticisms from the Opposition.

Meanwhile, some scientists have dismissed the idea that methane emissions from animal farming contribute to global warming due to their short lifespan (around ten years) in the atmosphere.

Naveen Athrappully contributed to this article.