Farmers' call
OPINION: Fonterra's $4.22 billion consumer business sale to Lactalis is ruffling a few feathers outside the dairy industry.
Fonterra's latest sustainability scorecard shows the co-operative making good progress towards its targets.
One of the co-op's biggest achievements is the 11% reduction in greenhouse gas emissions from coal in a single year, primarily through the conversion to renewable wood pellets at its Te Awamutu site.
Chief operating officer Fraser Whineray says this is a great sept towards delivering its 2030 target and the goal of getting out of coal by 2037.
"Having committed to get out of coal by 2037 from the nine remaining sites, Te Awamutu provided material GHG reductions and further confidence to undertake out next project at our Stirling cheese site in the South Island.
"Stirling will become our first 100% renewable thermal energy site.
"We are already one of the most carbon efficient producers of dairy nutrition in the world, and there is more to be done."
He says its important Fonterra continues to make progress in its operations to complement the significant innovation and change by farmer owners.
One of the ways we're supporting their on-farm activity is through The Co-operative Difference, he adds. This season The Co-operative Difference payment for milk comes into effect. In addition to valuing milk quality, it rewards farmers for on-farm demonstration of care for the environment, animals, people and community.
For the 20-21 season, there was a 25% increase in farms achieving the top and the midpoint targets, with around a third of farmer owners recognised in the overall programme. 53% of farmers in New Zealand also have tailored Farm Environment Plans, up from 34% last year.
"We are on track to meet our target of 100% by 2025 and these are provided free of charge to all Fonterra farmers," says Whineray.
"Considering our people goals, whilst there has been improvement towards our diversity targets there is room for improvement when it comes to women and ethnic minorities in senior leadership positions."
Fonterra's gender pay gap has narrowed across all job categories. In New Zealand the co-op is now down to 3.8% on a median basis, compared to the national average of 9.5%.
It has also recently extended its parental leave in New Zealand so employees will now have their government parental leave cover topped up to 100% of base salary or wages for 26 weeks.
On its sustainability scorecard, Whineray says transparently reporting across a range of sustainability metrics is very important for the co-operative.
Progress Results
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Fonterra has delivered a good sustainability scorecard. |
Environment
People
Academic Dr Mike Joy and his employer, Victoria University of Wellington have apologised for his comments suggesting that dairy industry CEOs should be hanged for contributing towards nitrate poisoning of waterways.
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The team meeting at the Culverden Hotel was relaxed and open, despite being in the middle of calving when stress levels are at peak levels, especially in bitterly cold and wet conditions like today.
A comment by outspoken academic Dr Mike Joy suggesting that dairy industry leaders should be hanged for nitrate contamination of drinking/groundwater has enraged farmers.
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