With a dairy culture collection of more than 40,000 strains, Fonterra could be well-placed to find a methane solution.
With a dairy culture collection of more than 40,000 strains, Fonterra could be well-placed to find a methane solution.
Finding a solution to methane release will be “a huge unlock” for dairy farmers’ emissions profiles, Fonterra chief executive Miles Hurrell has told a world dairy leaders summit.
Fonterra scientists were working with a probiotic strain from the company’s big dairy culture collection that could potentially switch off methane productionin cows, and the outlook was promising, Hurrell told the International Dairy Federation gathering in Chicago.
“Agriculture makes up almost half of New Zealand’s domestic greenhouse gas footprint, so we know as an industry and a country, we must find a solution,” he said.
“Innovation is part of our DNA, and I believe we have the right people and expertise to solve this challenge.
“Any methane solution must do four things - it has to be good for the cow, good for the milk, good for farmers and, of course, good for the planet.”
Hurrell said the challenge wasn’t easy but Fonterra, which is New Zealand’s biggest business and among the world’s top 10 dairy companies by revenue, believed more could be achieved by partnering with others.
One such alliance was between the New Zealand agri-industry and the Government in the public-private joint venture AgriZeroNZ, which was represented at the summit.
Fonterra CEO Miles Hurrell. Photo / Peter Meecham
“The JV is looking all over the world for solutions that could work for New Zealand’s pasture-based farming model,” Hurrell said.
Around $165 million over the next three years had been committed to accelerating the development of tools and technology through targeted investment, he said.
“The focus is on the commercialisation and scaling up of methane mitigation technologies, along with removing regulatory barriers.”
The start-up had made four investments to date and was eyeing a further 50 potential opportunities.
Also, Fonterra’s research and development centre had work under way on the company’s own methane reduction technology, called Kowbucha.
“We have one of the largest dairy culture collections in the world, with more than 40,000 strains,” Hurrell told delegates.
“Kowbucha uses one of our probiotic strains and could potentially switch off methane production in cows.
“It’s early days, but initial results are promising,” Hurrell said.
AgriZeroNZ this week appointed a chief executive, former Livestock Improvement boss Wayne McNee.
Half-owned by major agribusinesses Fonterra, ANZCO, Rabobank, Ravensdown, Silver Fern Farms and Synlait, with the other half owned by the Crown through the Ministry for Primary Industries, AgriZeroNZ was set up to accelerate the development and deployment of emissions reduction tools for farmers.
McNee has been the venture’s interim executive director during its set-up.
AgriZeroNZ chairman Sir Brian Roche said McNee’s appointment would provide much-needed certainty as the venture approached the challenging task of getting affordable and effective emissions tools into farmers’ hands.
Andrea Fox joined the Herald as a senior business journalist in 2018 and specialises in writing about the dairy industry, agribusiness, exporting and the logistics sector and supply chains.
