One of Fonterra's customers, chocolate company Mars, has announced a multi-million dollar sustainable dairy plan as part of a 'goal to halve its greenhouse gas emissions by 2030.
The company, which makes Snickers and M&M's, is putting US$47 million into the 'Moo'ving Dairy Forward' project over the next three years.
More than 200,000 cows and 1000 farms supply dairy for Mars' billion-dollar confectionery brands. Dairy is the second largest contributor to the carbon footprint of Mars' Snacking business, and raw ingredients account for over 70 percent of the organisation's overall greenhouse gas emissions.
Moo-ving Dairy Forward involves a new collaboration with dairy cooperative FrieslandCampina, one of the world's largest dairy producers.
It would dedicate a group of farms to Mars' dairy supply, with an ultimate goal of scaling up new practices and innovative technologies for adoption across the entire co-op.
Mars has also launched three pilot 'net zero' farms in Germany, with the goal of creating a scalable and economically viable pathway to net zero dairy.
Company spokesperson Amanda Davies said its vision for more sustainable dairy would only become a reality with the support and actions of farmers and suppliers.
"Which is why, as part of our Moo'ving Dairy Forward Sustainable Dairy Plan, we're putting millions of dollars directly back into the pockets of farmers through our contracts to help them make climate smart changes to the way they farm.
"Together, I know that we can forge a path that helps address climate change head on and contributes to reshaping our wider industry for a more sustainable future."
Fonterra has been approached for comment about the impact on farmers in New Zealand.