NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
    • The Great NZ Road Trip
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • Deloitte Fast 50
    • Generate wealth weekly
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In

Advertisement
Advertise with NZME.
Home / Business

Fonterra's sustainability carrot looks more like a stick

By Rebecca Howard
BusinessDesk·
28 Jun, 2020 09:06 PM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save
    Share this article
Farms that meet sustainability and value targets will earn more. Photo / File

Farms that meet sustainability and value targets will earn more. Photo / File

Fonterra Cooperative Group recently announced it will pay farmers more for sustainable, high-quality milk, but it turns out it's more of a stick than a carrot.

The dairy exporter is introducing a cooperative difference payment of up to 10 cents per kilogram of milk solids if a farm meets on-farm sustainability and value targets from next season, kicking off on June 1, 2021.

READ MORE:
• Fonterra appears to have seen the error of its ways on bill paying
• Peter McBride named chairman-elect of Fonterra
• What farmers can expect from Fonterra's Q3 update
• Workers evacuated after ammonia leak at Fonterra Te Rapa

Fonterra is forecasting it will pay its farmers in a range of $5.40-to-$6.90/kgMS in the current season.

"It makes sense to financially reward those farmers who go the extra mile to help our co-op differentiate its milk," said Fonterra chief executive Miles Hurrell.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

The payment, however, is not in addition to the milk price normally paid to farmers.

"The total farmgate milk price will remain the same across the cooperative, but the amount that each individual farm is paid will vary depending on their contribution under the cooperative difference," said Hurrell.

Tick the boxes... or else

Advertisement
Advertise with NZME.

"Basically it's a case of if you tick all the boxes then you get the full payment, if you don't then you are penalised - so not really a bonus for those that go above but a penalty for those that don't achieve," said Andrew Hoggard, national vice president of Federated Farmers.

Under the system, the more a farmer achieves in the cooperative difference programme, the higher the payment will be.

The precise payment structure will be confirmed over the next few months following discussions with farmers, but will be no more than 10 cents/kgMS for the 2021/22 season, Fonterra said.

The amount and targets will be set annually by Fonterra's board.

Discover more

Agribusiness

Canadians buy big chunk of NZ's biggest dairy farming company

01 Jul 05:25 AM

A spokesperson from Fonterra said the amount each farm is paid for milk is influenced by a number of factors specific to that farm, not just the cooperative difference payment.

"A farm's level of achievement under the cooperative difference will influence how much they are paid by up to 10 cents in the 2021/2022 season, but due to the other payment parameters that may or may not result in their overall price being lower than the average farm-gate milk price."

Hoggard said it's important to see how it plays out, but he's concerned it might become a box-ticking exercise and could be rather subjective.

He added that he feels Fonterra "should have consulted more on this with farmers to ensure that they do have it right and are utilising all info sources."

Fonterra launched the cooperative difference programme last year to "help farmers produce high-quality, sustainable milk and prepare for any changes needed in the future."

- BusinessDesk

Advertisement
Advertise with NZME.
Save
    Share this article

Latest from Business

Premium
OpinionLiam Dann

Liam Dann: Runway for pre-election turnaround looks dangerously short for Luxon

Premium
OpinionHeather du Plessis-Allan

Heather du Plessis-Allan: Pulling out of the Paris climate deal will only become more popular

New Zealand

Lotto Powerball: Are you New Zealand’s latest overnight millionaire?


Sponsored

Why NZ businesses lag on solar and the adoption of clean on-site renewable energy

Advertisement
Advertise with NZME.

Latest from Business

Premium
Premium
Liam Dann: Runway for pre-election turnaround looks dangerously short for Luxon
Liam Dann
OpinionLiam Dann

Liam Dann: Runway for pre-election turnaround looks dangerously short for Luxon

For voters to feel good about the economy in 2026, we need signs of recovery very soon.

06 Sep 05:00 PM
Premium
Premium
Heather du Plessis-Allan: Pulling out of the Paris climate deal will only become more popular
Heather du Plessis-Allan
OpinionHeather du Plessis-Allan

Heather du Plessis-Allan: Pulling out of the Paris climate deal will only become more popular

06 Sep 05:00 PM
Lotto Powerball: Are you New Zealand’s latest overnight millionaire?
New Zealand

Lotto Powerball: Are you New Zealand’s latest overnight millionaire?

06 Sep 08:32 AM


Why NZ businesses lag on solar and the adoption of clean on-site renewable energy
Sponsored

Why NZ businesses lag on solar and the adoption of clean on-site renewable energy

14 Aug 09:40 PM
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP