Fonterra shaves 50c off forecast milk price
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
The investment will see electric boilers installed at the co-operative’s Whareroa, Edgecumbe, and Waitoa sites, along with further fleet decarbonisation.
The co-operative says this will contribute towards its goal of a 50.4% reduction in Scope 1 & 2 greenhouse gas emissions by 2030 from a 2018 baseline.
Fonterra chief operating officer, Anna Palairet, says the investments mark a significant step for the co-operative’s future operations.
“Last year, we turned off the last coal boiler in the North Island, meaning manufacturing operations in the North Island are now coal-free,” Palairet says.
She says these investments are the next step in creating enduring assets that are fit for the future as Fonterra looks to reduce its reliance on gas.
“Choosing the right energy solutions is about striking a balance between affordability, security of energy supply and reducing our environmental footprint, and the new electric boilers are crucial to navigating this challenge,” Palairet adds.
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She says the electrification projects play a significant role in ensuring efficient operations with a reliable energy supply for Fonterra’s manufacturing sites and to support the long-term sustainability of the business.
“It also represents a commitment to our farmer owners that we are building a resilient, future-ready co-operative,” she concludes.
