Reuters reported that in an effort to reward dairy farms for valuing sustainability through action, Fonterra, a New Zealand co-operative, announced it will increase payments to dairy farms with low pollution. In addition, customers Nestlé and Mars will give bonuses to the lowest-emitting farms.
"It's super important for us," stated Amanda Davies, chief research and development, procurement, and sustainability officer for Mars Snacking.
Dairy farms produce gas pollution that contributes to the warming of the planet. Methane, a potent emission, is released by cows during the digestive process, particularly through burps. Methane is more effective at trapping heat than is carbon dioxide, so it is especially important for dairy farmers to be mindful about managing it.
Manure management and fertilizer usage by dairy farms also contribute to the problem.
Dairy production is important for providing nutrients that humans consume, but the downside is that it has a negative environmental impact.
Different solutions to this problem are being explored, such as cowless dairy, and Fonterra's financial incentive is one way to reward dairy farms for making efforts to reduce their pollution. They will pay between one and five New Zealand cents on top of their expected payment to farms that maintain emissions lower than the baseline levels established in 2017-18.
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Mars and Nestlé will add additional incentive payments and fund on-farm tools that will help farmers continue to reduce pollution.
Supporting companies and brands that support eco-friendly initiatives is a great way to make a positive impact on the environment. It lets these companies know that customers value sustainability and that it is a wise business decision. It also encourages other companies to take similar steps to reduce their negative impacts on the environment.
Andrew Flay, a dairy farmer in the central North Island who milks 390 cows, is excited about the incentives and the impact they could have on encouraging farmers to make responsible choices. "The low emissions is something that I think everybody has to take on board, whether it's farming, dairy or industries," he said.
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