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Sustainability credentials pay off
Mike Borrie says certified grass-fed milk commands premium prices overseas.
Farmers with top “sustainability credentials” can claim a larger share of Fonterra’s milk payments, following the introduction of a new payment framework last month.
Those that qualify will be paid 10 cents more per kilogram of milk solids from Fonterra’s payment pool than farmers who do not qualify.
Fonterra Northland regional head Mike Borrie says the requirements will be a stretch for some farmers, but the new framework is about raising the bar.
There are several “sustainability pillars”, each with their own criteria. For the environmental pillar, farmers must achieve at least four out of five criteria.