Fonterra has released the details of how it will pay farmers for producing sustainable, high quality milk as part of The Co-operative Difference framework.
From 1 June 2021, up to 10 cents of each farm’s milk payment will be determined by the farm’s sustainability credentials and milk quality.
“Fonterra farmers are already among the world’s best in these areas and we’re really proud of that. The Co-operative Difference payment is another way we can recognise farmers, while also supporting our strategy to grow the value of our New Zealand milk by responding to increasing demand around the world for sustainably produced dairy,” says Richard Allen, Group Director, Farm Source.
“The new payment recognises farmers who are already going above and beyond because they’ve innovated and invested early, and it also offers farmers more encouragement for taking the steps required to meet the changing expectations of customers and communities, both today and into the future.”
“We want to reward the on-farm efforts that demonstrate our Co-op’s care for the environment, animals, people and communities. It’s these actions which help ensure we’re the dairy company of choice for customers around the world and for New Zealand dairy farmers, for generations to come,” says Richard.
The 10 cent Co-operative Difference payment is made up of:
Once these have been achieved;
While The Co-operative Difference framework was introduced in 2019, the milk payment is new to farmers.
Full details on the Co-operative Difference payment are available here.
The Co-operative Difference payment details:
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