Fonterra looks to “future proof” position

Fonterra has announced that it is taking steps to future proof the co-operative’s position as a world-leading and trusted producer of pasture-based milk products and to stay ahead of global consumer expectations.

Fonterra Group Director Co-operative Affairs Miles Hurrell said that consumers globally are driving a trend towards dairy products that are sourced from pasture-based milk.

“More than ever consumers want to know what is in their food and where it comes from.”

“We are in a unique position to make the most of this trend to enhance returns to our farmers who are already renowned for producing the best milk in the world. This recognition is a direct result of our farmers’ pasture-based farming model.”

“This gives us a key competitive advantage globally. Our milk products have an excellent reputation and we want to maintain that, and stay ahead of increasing consumer expectations. Already on GDT a premium is often paid for products made from New Zealand milk compared to products made from milk sourced in other countries.”

“Consumers love New Zealand dairy products and we want to increase that value by ensuring our New Zealand milk comes from predominantly grass-fed cows,” said Hurrell.

In addition, the wider commercial and regulatory environment continues to evolve.

Hurrell said that, given these factors, it was important that the co-operative future-proofed its position as a supplier of high-quality pasture-based milk products.

This commitment has seen Fonterra advise its farmers that it is establishing guidelines for the use of Palm Kernel Expeller (PKE) as a supplementary feed for dairy cows. Going forward the co-operative is recommending PKE guidelines to its farmers of a maximum of 3kg/per cow/per day.

“After pasture, PKE is one of the cheapest supplementary feed options for farmers, and our data shows that use of PKE is increasing. We recommend our farmers follow these guidelines in order to future-proof the co-operative’s position, while upholding our high standards of animal welfare.”

“The recommended maximum of 3kg/per day/per cow is a voluntary guideline and we will be working with our farmers to help them maximise on-farm profitability while ensuring the health of their herd,” said Hurrell.