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Fonterra has launched a new ingredient – a carbonzero certified organic butter.
It is NZMP's first certified carbonzero ingredient, and has been audited and verified by independent certifier Toitū Envirocare, Kelvin Wickham, CEO of the AMENA region for Fonterra said.
The ingredient has been launched in North America, so was currently available to customers in the USA, but over time it would be rolled out into other markets, Wickham told The Country Sport Breakfast's Brian Kelly.
To achieve carbonzero certification, Toitu audited and verified the carbon emissions for that ingredient across the supply chain, Wickham explained.
"We have to demonstrate that we've reduced our emissions to date, and then got plans in place to reduce them further."
"Then for the carbon footprint that the ingredient is producing, we have to look at attaining high-quality carbon credits to offset that carbon footprint."
"For example, they have to be approved by Toitū and be native forest regeneration or renewable energy projects."
Going through this process, helped customers reduce emissions in their supply chain and enabled consumers to buy products that made a difference, Wickham said.
Carbonzero ingredients were important because they could help meet sustainability targets and demonstrate environmental values, whilst also growing brand preference and market share through differentiated products, Wickham said.
"We've got one of the lowest carbon footprints in the world at Fonterra, I think we're about approximately one third of the global average per litre of milk produced already."
"If you combine that with an organic product on top of the carbonzero certified – then [we're in] a strong position."
Also in today's interview: Wickham said Fonterra's results for the first six months of the 2021 financial year will be announced on Wednesday 17. Details will be available on the My Co-op app and the Farm Source website.