Net Zero Pilot Dairy Farm shows promising results

In 2022, the Net Zero Pilot Dairy Farm began with both Nestlé and Fonterra looking to advance emission reduction, and Nestlé aiming to source 50% of their ingredients through regenerative agriculture methods by 2030. 

The Taranaki-based pilot farm is the result of this collaboration between Fonterra and Nestlé, aiming to create New Zealand's first commercially viable net zero dairy farm within 10 years. From novel technology to herd management, everything tested and used on the 290-hectare farm needs to be scalable, economically viable and practical to adopt. Solutions also must be good for the farmer, good for the cow and good for the milk.

Since 2022, the Fonterra-owned farm has achieved an approximate 27% reduction in absolute emissions and a 5.5% reduction in emissions intensity¹. The focus over the next three seasons is to reduce emissions intensity, targeting a 30% reduction by the 2026/27 season. This will be achieved through a focus on breeding and reproduction, calf-rearing, nitrogen use efficiency and the use of novel technology. Over the last two seasons, the farm has used crossbred sexed semen on the top 60% of cows based on their genetic merit, which has led to significant genetic gains, although challenges in conception rates remain.

The pilot farm has also shown promising results from use of EcoPond, which is a novel new technology that reduces methane that is created when manure is being stored, and is expected to reduce the methane emissions from the effluent pond by 93% since its installation in May 2024. Other novel technology includes the use of a milk cooling system via New Zealand-owned Coolsense, which on average can reduce dairy shed power consumption by up to 30%.

Native trees, Kapuka and Kānuka, have been planted to learn about silvopasture, the practice of integrating trees with grazing animals, with the aim to balance carbon, shade and shelter benefits as well as minimise negative effects on pasture growth and management. 

Fonterra and Nestlé will continue to share results of technologies and initiatives tested on the farm, with the hope that solutions can benefit dairy farmers across New Zealand. Fonterra Director of Sustainability, Charlotte Rutherford, says

New Zealand farmers are amongst the most emissions efficient dairy producers in the world² and Fonterra is committed to reducing emissions even further.³ In November 2023, Fonterra announced emissions reductions targets for 2030 and an ambition to be net zero by 2050. We’re making good progress, but there’s more work to do. We’re continuing to drive emissions reductions across our value chain to meet our near term targets and bring our sustainability progress through to every NZMP product you purchase. 
 

¹ The reduction in absolute emissions over the last two seasons was coupled with a decrease in milk production. Over this time the herd decreased from 600 to 550 cows and were switched to ten milkings across seven days rather than two milkings a day. This improved staff morale and reduced farm operating expenses but resulted in an 11-12% decrease in milk solids production per cow. The farm has returned to twice a day milking this season. 
² Mazzetto, A. M., Falconer, S., & Ledgard, S. (2022). Mapping the carbon footprint of milk production from cattle: A systematic review. Journal of Dairy Science, 105(12), 9713-9725. https://www.journalofdairyscience.org/article/S0022-0302(22)00585-9/fulltext
³ Fonterra Climate Roadmap (2024). p8. https://indd.adobe.com/view/610faa3e-f0aa-4d51-9dc4-a8e20d255da5