KEY POINTS:
Fonterra plans to commission a study of its carbon footprint.
The University of New South Wales, Scion and AgResearch will measure carbon emissions across the dairy company's complete supply chain and identify areas that require targeted programmes for reduction.
Barry Harris, chairman of Fonterra's sustainability leadership team, said
yesterday that internationally accepted methods would allow comparisons and set a base-line to make improvements.
"There is growing consumer and customer interest globally in seeing the carbon footprint of food products," he said.
"This research will give us some hard data to put around the gains that we are making through the environmental initiatives we have in place."
Fonterra confirmed the study would include methane emissions from cows.
New Zealand is facing a consumer backlash in foreign markets, particularly Europe, in a world increasingly concerned about carbon emissions and global warming.
Harris said the Government's recently announced climate-change policy would soon require disclosure of carbon emissions.
There would be three areas of study - measurement of on-farm inputs and outputs, processing and distribution.
Fonterra said it selected the joint partnership between University of New South Wales, Scion and AgResearch because of their experience and use of internationally accepted methodologies and leading reputation around the globe.
Harris said the university had already undertaken an analysis of Dairy Australia's carbon footprint, using proven methodologies and a leading international carbon footprint software programme.
Scion's Barbara Nebel had also already been involved in the data collection, modelling and producing national tools for the forestry industry in New Zealand, while AgResearch's Stewart Ledgard was the New Zealand representative on Britain's Carbon Trust agricultural working group.
AgResearch chief executive Andrew West said the issue was complex and challenging that required close collaboration between industry and R&D providers.
"Bearing in mind that on-farm emissions contribute the most to the total carbon foot-print of the dairy industry, we believe our proven expertise in carbon footprinting and understanding of New Zealand dairy farm systems will add significant value to the project," he said.
Fonterra is the world's largest dairy exporter and the fifth largest dairy company in the world, with annual turnover of $14 billion. It exports to 140 countries.
- NZPA
Big foot
* The three areas Fonterra will look at to determine its carbon footprint:Measurement of on-farm inputs and outputs related to the production of milk on the farm.
* Processing - including moving milk from the farm, manufacturing and transport for delivery.
* Distribution - including measuring the transportation of product from the manufacturing site, to the warehouse and shipment.