A statement from Fonterra
Fonterra Brands (New Zealand) Ltd (Fonterra) and Greenpeace Aotearoa Incorporated (Greenpeace) have agreed to resolve Greenpeace’s claim in the proceeding CIV-2024-404-2418 Greenpeace Aotearoa Inc v Fonterra Brands (New Zealand) Ltd.
The proceeding concerns claims by Greenpeace that a label on Anchor butter sold in New Zealand supermarkets between December 2023 and April 2025 (below, the Label) was misleading and in breach of the Fair Trading Act 1986 because the diet of cows whose milk was used to make the butter included non-grass feed including palm kernel expeller (PKE) (an imported supplemental feed).*
Fonterra accepts that the use in the Label of the two phrases ‘100% New Zealand’ and ‘Grass Fed’ in combination with each other was likely to mislead some New Zealand consumers, particularly those unaware of the nature of the feeds that are provided to dairy cows, and was in breach of s 9 of the Fair Trading Act 1986. The claim did not put in issue the question of whether or not the phrase “Grass Fed” on its own was misleading, and Fonterra makes no admission that the words “Grass Fed” in isolation are likely to mislead.
Fonterra has removed the Label from its Anchor butter packaging and has undertaken not to use the Label on its packaging in the future.
More from Fonterra
Fonterra and Greenpeace have settled a case brought by Greenpeace in 2024 concerning an historic Anchor butter label sold in New Zealand. The label used two phrases “100% New Zealand” and “Grass Fed” in combination.
Greenpeace claimed that the combined use of the phrases was misleading and in breach of the Fair Trading Act.
Fonterra has accepted that the use of the two phrases on the label, ‘100% New Zealand’ and ‘Grass Fed’ in combination, was likely to mislead some New Zealand consumers, particularly those unaware of the nature of dairy cows’ diet which may include some supplementary feed. The claim did not concern the phrase ‘Grass Fed’ in isolation and Fonterra stands by its ‘Grass Fed’ claims.
The New Zealand Government’s Ministry for Primary Industries has created a national New Zealand Dairy Grass-Fed Administrative Standard to define what constitutes a Grass Fed system in New Zealand. This reflects New Zealand’s temperate climate, which provides the ideal conditions for pasture-based farming that has been practiced by generations of New Zealand farmers. This national Grass-Fed Standard specifies the requirements and attributes that must be met for Grass Fed certification to be issued.
Fonterra’s farmers’ cows are 96% Grass Fed, with “grass” defined as including grass, grass sileage, hay and forage crops (including brassicas and legumes). Fonterra’s definition of grass is consistent with the grass-fed feed types in the New Zealand Dairy Grass-Fed Administrative Standard. The 96% statistic is calculated as an average across Fonterra’s farmers’ dairy herds, and on an ‘as consumed’ basis.
Fonterra is proud that our New Zealand milk is independently verified as meeting the requirements of the New Zealand Dairy Grass-Fed Administrative Standard.
You can read more about our Grass and Pasture Fed Standard here.
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