A new sustainability report from Fonterra says climate change, water and waste are areas which to be improved.

The company's second annual Sustainability Report also shows farmers have essentially fenced all cows out of waterways.

Fonterra's sustainability director Carolyn Matland told Mike Hosking the company is now turning to whole farm environment plans.

"We will be tailored to each farm, there will be about 28 sustainable dairy advisers to talk to farmers, one on one."

The scale of the industry in New Zealand means that dairy’s environmental footprint is of national significance, and one which has seen a big improvement over the years.

"Farmers have been putting in a huge amount of effort over the last decade to improve waterways."

When asked how it was going to work on such a large scale, Matland said it helps that many of the farmers are already on board and want to help keep the environment clean.

"It is a few things like making sure the cows stay out of the water, but what we are looking at doing now is making sure we have tailored plans in place for individual farms.'

LISTEN ABOVE AS CAROLYN MATLAND SPEAKS TO MIKE HOSKING