PKE can help meet cows’ nutritional needs, in particular, during adverse weather such as droughts when grass growth is low. Pasture is, and will remain, the main source of feed in New Zealand – it’s one of our competitive advantages.
Our farmers’ cows that supply milk to Fonterra New Zealand consume on average 85 per cent of their diet as grass, which can also include grass silage, hay and forage crops. PKE represents less than 5 per cent of total feed consumed by our farmers’ cows.
PKE sold by Fonterra’s Farm Source stores in New Zealand is bought through International Nutritionals Ltd (INL), who import it from a single source, Wilmar International. Wilmar have led the palm industry, being the first to implement a "No-deforestation, No-peat, No-exploitation” policy.
The majority of the PKE sourced by INL originates from Wilmar’s own facilities in Malaysia and Indonesia, with a small portion from third-party suppliers.
We have 94 per cent traceability to mill, and 19 per cent traceability to plantation for PKE imported for the year to December 2017.
We have been working closely with The Forest Trust and our suppliers to increase traceability and transparency, as well as support sustainability transformation in the palm sector.
Fonterra also believes that protecting New Zealand from foreign bio-security risks is of utmost importance. We fully support the Ministry for Primary Industries (MPI) ongoing actions to strengthen New Zealand’s biosecurity systems, and we import exclusively from MPI-approved facilities.
The Wilmar processing plants are located in gated industrial complexes beside export ports and are ISO9002 certified. The PKE is mechanically processed under high temperatures and shipped within a month of production. As an additional precaution, all PKE is fumigated prior to shipment and there are several physical inspections on arrival.
For further information on our PKE supply chain refer to: