Fonterra has hit back at a new report criticising the company's greenhouse gas emissions, saying such reports do little to help reduce them.
' Milking the Planet ', written by Institute of Agriculture and Trade Policy's Europe director Shefali Sharma, singles out Fonterra - criticising its reliance on synthetic fertiliser and a corporate structure which has led to increasing amount of debt on farms.
"Half of New Zealand's emissions come from the livestock sector, its agricultural emissions having risen by 12 per cent since 1990," the report says.
"The government attributes this rise to a doubling of its dairy herd and a 600 per cent increase in fertiliser use.
"In two years (2015-2017), Fonterra increased its emissions by 7 per cent due to a commensurate rise in its production.
"Fonterra's nearly 10,000 farmer shareholders incurred huge losses last year, calling into question Fonterra's corporate structure and investment strategy - in 16 years (2003-2019), New Zealand's on-farm debt increased by NZ$30.1 billion."
The report also took aim at Fonterra's involvement in New Zealand's commitment to reducing methane emissions by 10 per cent below 2017 levels by 2030, which Fonterra has called a "very ambitious" target, likely requiring the use of "breakthrough mitigation activities, including some that are not yet technically and commercially viable".
Carolyn Mortland, Fonterra's director of global sustainability, said "addressing climate change is one of the most challenging global issues facing the dairy industry, and it’s a key focus for Fonterra".
"We're focused on doing more to reduce our use of fossil fuels in transport and manufacturing and finding ways to manage and mitigate animal emissions on farm," Ms Mortland said.
"A strong healthy environment is the foundation for a strong economy and sustainable dairy farming.
"However, the IATP Report contains several inaccuracies and we view it as a missed opportunity for real dialogue about solutions to climate change and creating a sustainable future for everyone.
"For example, the Fonterra emissions are significantly over reported (44m tonnes of C02-e rather than 22m).
"In contrast, a comprehensive and peer-reviewed report released earlier this year found that the carbon footprint of New Zealand's on-farm milk supply is less than one-third of the global average and up to 30 per cent lower than greenhouse gas footprints of European and North American milk production.
"A litre of milk produced in New Zealand creates 0.91 kg of CO2 emissions – compared to the global average of 2.5 kg of CO2 emissions.
"Over the last 25 years, New Zealand dairy farmers have reduced on-farm emissions intensity by about 20 per cent - the strongest improvements were from 2007 to 2016.
"They've managed to do this by improving the efficiency of their farming operations.
"There is more work to be done but reports such as the IATP do little to contribute to public debate or new ideas."
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