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Home / The Country / Listen

Fonterra's Mike Cronin on He Waka Eke Noa and a new season

The Country
9 Jun, 2022 09:00 PM3 mins to read

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Content brought to you by Fonterra

Fonterra supports He Waka Eke Noa's recommended approach as an alternative to pricing agricultural emissions through the Emissions Trading Scheme.

The partnership is recommending a farm level split-gas levy with built-in incentives to reduce emissions and sequester carbon, starting from 2025.

This approach will enable Kiwi farmers to directly benefit from decisions they make on-farm, Mike Cronin, Managing Director of Co-operative Affairs at Fonterra said.

It would also have benefits outside of New Zealand, he told The Country Sport Breakfast's Brian Kelly.

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"That's really important because, regardless of the rules, it is what customers all around the world want.

"They want to know what's in their dairy products and that includes the emissions profile as well."

Fonterra had already put in a lot of "hard work" in this area and was one of the most emissions efficient dairy producers in the world, Cronin said.

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However, there was still more to do and the co-op would continue to be innovative in order to maintain this valuable advantage.

"Once you're ahead of the pack you've got to keep working hard to stay there and that's really important."

Having a farm level split gas levy that aligned with customers' desire for low carbon dairy production was better than what might have been achieved through the Emissions Trading Scheme, Cronin said.

"This partnership with Government, industry and iwi has allowed farmers and producers in the ag sector to actually have a say in their own future, which is good."

Meanwhile, a new season had kicked off and things were looking "pretty good" for Fonterra's farmers so far, Cronin said.

A couple of weeks ago Fonterra announced a strong opening forecast Farmgate Milk Price for the new season of $8.25 - $9.75 per kgMS, with a midpoint of $9 per kgMS.

Last season, the co-op maintained its forecast range of $9.10 - $9.50 per kgMS, with a midpoint of $9.30 per kgMS.

"We hit the highest forecast milk price in the co-op's history," Cronin said.

Moving Day took place last week, when farming families, shareholders, contract milkers, employees, and cows moved to new farms.

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Cronin was pleased to report it had all gone "pretty well" this year.

Now was a good time for farmers to check their equipment and make sure everything was running smoothly, he said.

"They might even have a bit of time to do some maintenance around the farm."

This downtime would be short-lived, however, as calving was on the horizon.

"Of course, that's an incredibly busy time of year for farmers."

For Fonterra, this time of year was a good chance to thank farmers for all their hard work and wish them the best for the new season, Cronin said.

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The co-op was also there for those farmers under pressure from regulatory changes, he said.

"Part of what we offer at the co-op is that there's always somebody to talk to in our field teams. We've got Area Managers and Sustainable Dairying Advisors.

"They love to help, they're great people and sometimes they can provide a little bit of support and help for our farmers as well. That's one thing the co-op prides itself on."

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