Fonterra launches climate payments for low-emission farms, dairy farmers lead global cost efficiency race, and proposed law aims to unlock farm equipment repairs.

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Fonterra launches climate payments for low-emission farms

Fonterra dairy farmers can earn additional payments for reducing their climate impact starting June 1st, with bonuses ranging from 1 to 25 cents per kilogram of milk solids. The cooperative expects more than 5000 farms will qualify for the new climate incentive program based on last season's data.

Farm emissions must fall below Fonterra's 2017/2018 baseline to qualify, with measurements including cow feed, fertilizer, animal emissions, and drained peat soils, offset by carbon captured in trees and vegetation. Sustainability Director Charlotte Rutherford says about 80 percent of farmers will be eligible for the base payment of 1 to 5 cents.

An elite group of 300 to 350 farms achieving emissions around 30 percent below average will receive premium payments of 10 to 25 cents, funded through partnerships with Mars and Nestle. These global food companies are working with Fonterra to reduce their supply chain emissions.

The cooperative is offering additional support services to 87 percent of farmers, including genetic improvements for herd efficiency. These climate payments will stack on top of existing bonuses of up to 10 cents per kilogram for meeting other quality criteria.

Fonterra aims to cut emissions 30 percent from 2018 levels by 2030 to maintain market access and meet increasing customer demands, even as government pricing of farming emissions remains delayed until 2030.

 

Dairy farmers lead global cost efficiency race

New Zealand continues to lead global dairy production efficiency despite worldwide increases in farming costs, according to a new Rabobank report. The analysis shows New Zealand and Australia maintaining their position as the world's lowest-cost milk producers among major dairy-exporting regions.

Report author Emma Higgins says production costs across eight major dairy-exporting regions have risen by 14 percent since 2019, with most of this increase occurring after 2021. Despite these pressures, New Zealand has extended its cost advantage to 5 cents per litre over nearest rival Australia in 2024, benefiting from pasture-based systems and locally-produced feed.

Farm working expenses have faced the most pressure globally, with feed costs rising 19 percent across the studied regions since 2019. While New Zealand has felt significant interest rate pressures, its reliance on pasture grazing has helped maintain its competitive position.

Looking ahead to 2035, Higgins anticipates continuing volatility in the sector due to geopolitical instability, climate variability, and increasing regulatory pressures. She emphasizes the importance of strong margin management for dairy farmers to maintain resilience in this challenging environment.

The report signals potential changes in global dairy trade as China becomes more cost-competitive in domestic production, which could impact exporters who have historically relied on strong Chinese demand.

 

Proposed law aims to unlock farm equipment repairs

A new bill heading to Parliament could give farmers the legal right to repair their own machinery, challenging current warranty restrictions that limit repairs to manufacturer-certified technicians. The Consumer Guarantees Right to Repair Amendment Bill, drafted by the Greens, faces its first reading today.

Green Party co-leader Marama Davidson says the legislation would require manufacturers to provide repair manuals and spare parts, removing barriers that currently prevent farmers from accessing diagnostic information or conducting repairs on their own equipment.

The bill aims to close a legal loophole that allows manufacturers to restrict repair options by claiming parts and information are unavailable. Similar legislation has already been adopted in the European Union, with implementation set for 2026.

The proposed changes have gained support from Consumer NZ, the Right to Repair Coalition, and academic institutions.The initiative follows Australia's recent struggle to establish voluntary right-to-repair agreements between their

 

Kumara growers join major Kaipara waterway restoration

HortNZ and Kaipara Moana Remediation have launched a joint initiative to strengthen resilience in Northland's kumara industry while protecting local waterways. The pilot program will support growers in the Northern Wairoa catchment with fencing and native planting projects.

HortNZ Chief Executive Kate Scott says the partnership aligns with their Growing Change project goals, aiming to help growers reduce sediment loss by up to 50 percent while building climate resilience. The program will contribute to growers' NZ Good Agricultural Practice environmental certification.

KMR Chief Executive Justine Daw reports the partnership, funded through June, focuses on promoting best management practices and increasing farm resilience against future climate events. Local drainage district leaders and Kaipara District Council are involved in reviewing planting project designs.

The initiative will be showcased at the Vegetables NZ Research Roadshow in Dargaville today, targeting engagement with the Northern Wairoa Vegetable Growers Association. The project forms part of New Zealand's largest harbour restoration program, working to halve sediment flows into the Kaipara harbour.

This collaboration extends Growing Change, a three-year partnership between HortNZ and the Ministry for Environment, supporting the development of freshwater farm plans across the horticulture sector.

 

Former bronze medalist tops Waikato Young Farmer contest

Hugh Jackson has secured his second FMG Young Farmer of the Year Grand Final appearance after winning the Waikato Bay of Plenty Regional Final at Waerenga School. The 27-year-old, who placed third in the 2023 Grand Final, edged out fellow Hamilton Young Farmers member Stephen Brunskill, with Will Evans from Piarere Young Farmers taking third place.

Jackson faced intense competition across practical skills, technical knowledge, and pressure situations, including mechanical challenges that tested his adaptability. The victory puts him in contention for the prestigious farming award's prize pool of over $90,000 in what he describes as likely his final attempt at the title.

The regional competition also saw success for younger competitors, with Elstow-Waihou School's team of Heidi Morris, Angus Gregory, and Harrison Gregory winning the AgriKidsNZ category. Cambridge High School brothers Ben and Stephen Ede claimed the Junior Young Farmer regional title.

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