What we've been doing
Fonterra has a dedicated and highly trained team focusing on animal welfare for our global supply of milk. This team undertakes specific training for animal welfare from both internal and external sources.
This team is responsible for:
- Delivering animal welfare training within Fonterra and to external stakeholders.
- Focusing on animal welfare and how to achieve continuous improvement on supplying farms.
- Setting animal welfare policy and standards.
- Implementation and compliance with these policies and standards.
- Conducting and overseeing global audits.
Key items from our global animal welfare standards
Our global animal welfare standards (as summarised below) apply to all dairy animals in our supply chain regardless of the finished product or brand their milk is used in.
Prudent use of antibiotics
Antibiotics must only be used must be for therapeutic or curative treatment following guidance from, and consultation with a veterinary surgeon. Prophylactic antibiotic use is not permitted. Antibiotic usage in New Zealand is low as our cows have low levels of mastitis and other diseases, largely attributed to our pasture-based farming system and the care given by our farmers. New Zealand has been ranked as the 3rd lowest user of antibiotics in animals in the world.1
We continue to improve our global data capture systems to enhance reporting of on-farm antibiotic use. In the meantime, we make use of independently collected national data to track quantities and trends of antibiotic use. Key information from the most recent New Zealand data from Ministry of Primary Industry includes:
The total mass of antibiotics sold in New Zealand for use in agriculture continues to decline, with the sixth consecutive annual decrease in volume sold.
All registered Dry Cow Therapies in New Zealand contain either penicillin (cloxacillin ± ampicillin) or first generation cephalosporins.
No growth promoting hormones
Growth promoting hormones (HGPs) must not be used in any cows supplying milk to Fonterra.
Prohibited use of recombinant bovine somatotrophin (rBST)
Our farmers are not permitted to use growth hormones (rBST) to increase milk production. The New Zealand Government prohibits the use of animal growth hormones in dairy cows.
Avoidance of close confinement
Close confinement is not allowed for animals supplying milk to Fonterra. Each cow must have enough space to stand, stretch, turn around and to lie down comfortably to achieve adequate resting time.
The practice of keeping animals in individual calf crates is not acceptable for animals being reared to supply milk to Fonterra.
Permanent tethering is not allowed for animals supplying milk to Fonterra.
Pasture-based farming, where cows graze outside on grass, is the most common approach used in our supply chain. To meet the requirements of the New Zealand Grass-Fed Administrative standard, cows must on average graze pasture or forage crops at least 340-days per year for at least 8-hours per day.
Avoidance of permanent physical alterations
Routine tail shortening of dairy cows or calves is not permitted on farms supplying Fonterra. Where tail amputation is required as a medical treatment (e.g. due to accidental injury), this should be performed under the supervision of a veterinarian.
Fonterra supports the use of cattle with polled genes. Where polled cattle are not available, disbudding of young calves is preferred to the de-horning of older animals. Disbudding and de-horning must be performed with appropriate pain relief.
Castration and shortening of the scrotum of dairy bull calves should only be carried out at a young age with techniques that minimise acute and long-term pain or discomfort. When castrating animals over the age of six months, appropriate pain relief must be used.
Humane slaughter
Our global standard requires that euthanasia must either cause immediate death or render the animal insensible (unconscious) before slaughter. Death must not cause avoidable anxiety, pain, distress or suffering. Persons undertaking humane slaughter must be suitably trained and competent – this training is recorded in the farm records.
Limiting long distance transportation of live animals
Across our global supply chain, long distance transportation of live animals should be avoided wherever possible.
When being transported, all animals should be provided with food, water, and rest which is adequate to their needs.
Cloning
Fonterra is opposed to the practice of using animals that have been subject to genetic engineering or have been cloned. We will not accept milk from any cow that is a genetic clone.
Managing policy and performance
The development of strategy, policy and standards for the global management of farm animal welfare is the responsibility of Fonterra’s Director On Farm Excellence. Our welfare policies and standards are approved by the Fonterra Board and the Senior Management Team.
The management and implementation of Fonterra’s animal welfare policies and strategies is undertaken at a local level, supported by our centralised On Farm Performance team. This team also works to provide education and increase awareness of the importance of good animal wellbeing.
Globally, our International Milk Quality team assesses animal welfare as part of their milk quality audits in all markets outside of New Zealand where we source milk. This enables Fonterra to identify any issues and recommend improvements to farmers. Many markets also have local veterinary and milk quality support teams to manage this work.
1 Hillerton, J. E., Bryan, M. A., Scott, & D. (2025). Consumption of antimicrobials for use in food-producing animals in New Zealand, a measure of progress in reduction from 2015 to 2022. New Zealand Veterinary Journal, 73(3), 187-194. https://pubmed.ncbi.nlm.nih.gov/39693638/
Our progress
No growth-promoting hormones
Growth promoting hormones are not used in cows supplying milk to Fonterra.
Prohibited use of recombinant bovine somatotrophin (rBST)
Fonterra farmers are not permitted to use growth hormones (rBST) to increase milk production. The New Zealand Government prohibits the use of animal growth hormones in dairy cows.
Avoidance of close confinement
0% of animals supplying Fonterra have been reared in close confining individual calf crates.
0% of animals supplying Fonterra are permanently tethered.
99.8% of the cows in our supply chain have access to pasture.
Avoidance of painful procedures
100% of the cows in our global supply chain are free from routine tail docking.
2.3% of the dairy calves in our global supply chain are free from disbudding.
99.2% of the calves disbudded in our global supply chain are given pain relief at the time of the procedure.
100% of the cows in our supply chain are free from dehorning.
Limiting long distance transportation of live animals
Long distance transportation of live animals is avoided wherever possible across our global supply chain. In New Zealand, most young calves are not transported longer than 5 hours. We estimate the average travel time for cows in our global supply chain to be 2-3 hours.
We continue to improve our global data capture systems to enhance reporting of transport times.
Pre-slaughter stunning
- 99.7% of the cows in our global supply chain are subject to pre-slaughter stunning.
Fonterra is part of Dairy Partnerships which aims to make the New Zealand dairy sector "world leading in animal care".
New Zealand farmers supply more than 94% of all milk collected by Fonterra, but all Fonterra suppliers around the world must follow our Group Animal Health and Welfare Standard, which reflects the World Organisation for Animal Health (OIE) welfare principles and standards.
Details of these are available at:
- OIE Section 7.0 – Terrestrial Animal Health Code
- Chapter 7.1 – Introduction to the recommendations for animal welfare, Articles 7.1.1 to 7.1.4;
- Chapter 7.3 – Transport of animal by land;
- Chapter 7.5 – Slaughter of animals;
- Chapter 7.11 – Animal welfare and dairy cattle production system
Adopting good management practice across the supply chain
The Co-operative Difference
Fonterra’s Co-operative Difference framework is now into its sixth year of existence.
We know that farmers who actively focus on animal health and welfare and who have a good relationship with their veterinarian usually achieve better animal wellbeing. The Animals focus area recognises this and requires farmers to develop an Animal Wellbeing Plan with their vet. At a minimum, the plan must discuss how the farm is going to make improvements in the areas of:
- Mastitis
- Lameness
- Mortality
- Body Condition
- Antimicrobial use
- Provision of shade and shelter
- Genetic influences of animal wellbeing
- Calf nutrition
- Calf health
- Calf housing
- Reproductive performance
- Young stock management
For more information on The Co-operative Difference, including details of the payment scheme and other sustainability focus areas, click here.
Prudent use of antibiotics
The New Zealand Veterinary Association has announced an ambitious goal: By 2030 New Zealand Inc. will not need antibiotics for the maintenance of animal health and wellness. We have been supporting veterinarians and farmers to meet this goal through aligned messaging and co-branding with the New Zealand Veterinary Association. In 2019, through The Co-operative Difference we began asking Fonterra suppliers to meet with their veterinarian every year to have a discussion on antibiotic use.
We support the Ministry for Primary Industries’ antibiotics review and reassessment programme, and we will update our own internal policies and standards, where required, to reflect the outcomes of this review.
Cared for Cows
In June 2018, we launched the Fonterra ‘Cared for Cows’ programme.
Through this program we collect and verify a range of animal welfare performance data from all our supplying farms in New Zealand. This data is combined with other information sources and analysed to identify farms at risk of animal welfare compromise. Those farms are proactively visited and support offered should any concerns be identified. Through this novel approach we promote the value of positive welfare to our suppliers, and proactively support them to ensure welfare standards are maintained.
Our internal audit and review process has led to improved sensitivity in the system and a refinement of the metrics we examine. We are now confident enough in our Cared for Cows process that we have had our standard certified by AssureQuality, an independent Conformity Assessment Body.
Improving stakeholder understanding
Industry collaboration
We work with industry bodies and training organisations to ensure farmers have access to high-quality information and training that covers expected best practice and relevant regulatory requirements.
We regularly meet with industry partners including other dairy processors, farmer representative bodies, veterinarians, genetic improvement companies, meat processors, livestock transporters, and regulators to ensure these industry stakeholders are kept up to date with our priorities and activities.
Elevating enrichment
Our pasture-based dairy cattle are provided with many opportunities for enrichment, including varied diets, freedom of movement, regular paddock changes, natural features to interact with, and social interactions with peers.
Advocating for robust standards and regulation
Farmer education and training
We keep our supplying farmers up to date with the latest animal welfare practices and requirements and work closely with dairy industry bodies to provide farmers with comprehensive training and supporting information.
For example, Fonterra suppliers in New Zealand and Australia are members and funders of the industry good organisations Dairy NZ and Dairy Australia. We work with these organisations to provide extensive animal welfare advice, training and support material to our farmers. This can be found at: Dairy NZ and Dairy Australia.
We have produced a series of educational videos about calf rearing and an accompanying guide, for people looking to start rearing calves themselves, or brush up on their skills.
In Australia we have developed a Healthy Calves module for farmers to complete as part of their Farm Environment Plan
In Sri Lanka we have a central training facility where farmers can learn more about animal care, as well as field offices who will go out to farm and run local discussion groups.
Improving industry standards
Fonterra regularly engages with the New Zealand Government and the wider dairy sector via the Dairy Companies Association of New Zealand (DCANZ).
In 2020 we have contributed to the Winter Grazing Action Group which is implementing recommendations to improve animal welfare in winter grazing systems, and provided detailed input for the review of New Zealand’s Biosecurity Act.
International partnership
Fonterra is a member of the International Dairy Federation (IDF), a recognised international authority which contributes actively to the development of science-based standards for the dairy sector.
IDF has working relationships with several global intergovernmental organisations and has a formal status with the Food and Agriculture Organization of the United Nations (FAO), World Organisation for Animal Health (OIE) and the Joint FAO/WHO Food Standards Programme – Codex Alimentarius.
IDF has also published a calf care guide and a Guide to Good Animal Welfare in Dairy.
Being prepared for incident response
Engaging with DairyNZ
In New Zealand Fonterra actively engages with Dairy NZ to support farmers through challenging times and assists them in getting their animals and farms back on track.
If an animal welfare issue is raised with Fonterra or DairyNZ, a Fonterra Milk Quality Manager, along with a DairyNZ Animal Care Extension Specialist, will work closely with the farmer, and Ministry for Primary Industries if necessary, to offer support and assistance.
Support includes developing a step-by-step action plan, conducting cow Body Condition Scoring, developing a feed budget, and recommending the services of Federated Farmers, Rural Support Trust, and farm dairy consultants if necessary.
Follow up visits take place to ensure the action plan is being carried out.
Being active in innovative solutions
Free on-farm advice for our farmers
Fonterra prides itself in being hands-on to support our supplying farmers globally. Our team provides farm technical assistance in all milk regions in the form of:
- On-farm workshops
- Farmer discussion groups
- Milk quality trace backs
- Open days
- Farmer education events
Research and development projects
We partnered with AgResearch Animal Welfare Team to assess and understand elements of pasture-based systems which provide the greatest welfare benefits and identify improvements to further enhance the wellbeing of our cattle.
We are working with vets and researchers to improve how we monitor and manage disease in cattle. With the premise prevention is better than cure, monitoring and early notification of disease are paramount.
For example, we are partnering in projects improving monitoring and management of diseases such as facial eczema and in improving whole herd monitoring of lameness. Improvements in monitoring will enable more proactive action and management of animal health and better avoidance and treatment of painful conditions.
Having milk samples every day has its advantages; not only does it allow constant monitoring of the quality of our milk, but we are developing milk tests to assess the health and wellbeing of our cows. Development of the capacity to detect and interpret markers in milk (which we broadly refer to as milk fingerprinting) has the potential to give insights into a cow’s nutrition, the type of diet, her mineral status or reflect stressors and quality of life. Being able to give feedback on cows’ nutrition, health and wellbeing will help our farmers optimise the lives of their animals.
Mastitis control support
Fonterra has systems in place to provide guidance and support for farmers who are identified as having higher than expected levels of mastitis. Farmers with elevated somatic cell count readings are proactively contacted and encouraged to seek assistance. In many situations the cost of support is subsidised by Fonterra.
In New Zealand we have a network of veterinarians with advanced mastitis knowledge who have undertaken training with internationally respected experts in the field of mastitis investigation and control. These vets are available to assist our farmers to reduce the cell count of their herd with practical on-farm solutions. Fonterra’s in-house veterinarians monitor and assess the advice given by external advanced mastitis vets.
Based on the data we collect from farmers supplying us with milk in New Zealand, the average mastitis incidence rate for the 24/25 season was 13 cases per 100 cows (13%), the average lameness incidence rate for the 24/25 season was 6 cases per 100 cows (6%).
Biosecurity readiness and response
Fonterra knows the value to our primary industries of our island nation’s status as relatively free from diseases and pests found elsewhere in the world. Protecting this status and New Zealand’s unique environment is everyone’s responsibility and we are only as strong as the weakest link. Fonterra engages widely to support and improve the New Zealand biosecurity framework and we are one of the founding signatories to the Biosecurity Business Pledge.
As a member of the Dairy Companies Association of New Zealand (DCANZ), Fonterra contributes to:
Government Industry Agreements (GIA), these are a partnership between primary industries and government, signatories share the decision-making, responsibilities and costs of preparing for – and responding to – biosecurity incursions. By working in partnership, industry and government can achieve better biosecurity outcomes.
Joint readiness activities including the Livestock contribution to the Livestock Sector Biosecurity Council, which brings representatives from the livestock industries and MPI together to work on opportunities and issues specific to the livestock industry.
Animal wellbeing plans
We know that farmers who actively focus on animal health and welfare and who have a good relationship with their veterinarian usually achieve better standards of animal wellbeing. In recognition of this, our farmers must develop and implement an animal wellbeing plan with their veterinarian in order to achieve within The Co-operative Difference.
At the end of 2024/25 season, 92% of supplying farms in New Zealand have an Animal Wellbeing Plan prepared with their veterinarian. For the 2025/26 season, all supplying Fonterra New Zealand farms are required to have a Animal Welfare Plan prepared with their vet as part of our Terms of Supply.
Somatic cell count monitoring
Somatic cell count (SCC) is not only an indicator of milk quality, a low SCC also gives an indication of good animal husbandry. The FY25 global weighted average for SC is 167 000 cells/ml.
Therefore, the overall global result is stable this year and remains well below the European Union import/export standard of 400,000 cells/ml, which is a widely quoted standard. We will continue to work towards lower counts.
Somatic cell count average (mean) ('000 cells/ml)
Country |
FY25 |
FY24 |
FY23 |
New Zealand |
164 |
169 |
172 |
Australia |
168 |
180 |
182 |
Sri Lanka |
739 |
705 |
574 |
Global weighted average (by volume) |
167 |
170 |
173 |
Non replacement calves
We're proud that New Zealand cows have high reproductive performance and live longer, healthy lives. Consumers here in New Zealand and around the world are increasingly looking for more assurances around the quality of life experienced by the animals who produce their food.
As part of our strategic choice to build on our sustainability position, Fonterra places a strong emphasis on calf wellbeing and a big part of this is ensuring that all dairy calves have a useful life. This is why we have introduced a new clause within the Terms of Supply which means calves can only be euthanised on-farm when there are humane reasons for doing so.
Since 1 June 2023, Fonterra farmers have been required to ensure all their non-replacement calves enter a value stream -either beef, calf-veal or petfood. We understand sale options in parts of New Zealand are currently limited, which is why we’re actively collaborating with the wider industry, investing in R&D and exploring long-term solutions such as dairy-beef partnerships and opportunities.
Goals and targets
Animal Wellbeing Plans for all our farms
At the end of 2024/25 season, 92% of supplying farms in New Zealand have an Animal Wellbeing Plan prepared with their veterinarian. For the 2025/26 season, all supplying Fonterra New Zealand farms are required to have a Animal Welfare Plan prepared with their vet. as part of our Terms of Supply.
Lower our global SCC even further
Udder health is important component of overall health for cows – and good health is important for animal wellbeing. We want to continue to lower our global somatic cell count (SCC). In FY25, our global weighted average for SC was 167,000 cells/ml.