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Fonterra Set an On-Farm Emissions Target. Here's What It Means for Suppliers.

3 min read

Your field rep raises Fonterra's climate target: the co-op wants its on-farm emissions down per tonne of milk, and asks where your farm sits. Two questions follow: what is Fonterra actually asking, and what do you need to do about it?

About this guide

CO2 Lab is not affiliated with, endorsed by, or partnered with Fonterra. This guide explains their publicly stated on-farm emissions target, as at October 2026, to help suppliers respond, and is based on the sources linked below. All trademarks are the property of their respective owners.

What Fonterra is asking

On-farm emissions are more than 90% of Fonterra's footprint, so its own operations are only a small part of the picture. Fonterra has an SBTi-aligned target to cut Scope 1 and 3 FLAG emissions from dairy by 30% per tonne of milk by FY30, from an FY18 baseline. FLAG stands for forest, land and agriculture, the biological emissions of farming. Because the target is measured per tonne of milk, it is about intensity: producing the same milk with fewer emissions. That depends on its farmer suppliers, which is why the data request lands with you.

The target at a glance

Fonterra's on-farm targetDetail
TargetCut Scope 1 and 3 FLAG emissions from dairy 30% per tonne of milk by FY30, from an FY18 baseline
AlignmentSBTi-aligned, under the FLAG method for the land sector
Where it sitsMore than 90% of Fonterra's footprint is on-farm
Biggest linesEnteric methane from the herd and nitrogen from fertiliser
What you provideA per-farm footprint from herd, feed, fertiliser and energy records

The biggest lines are biological

Unlike most supply chains, a dairy farm's largest emissions are not fuel or power. They are biological: enteric methane from the herd and nitrous oxide from nitrogen fertiliser and effluent. So the footprint a farm needs is built from herd numbers, feed, fertiliser use and effluent management first, then fuel and electricity. For a food or dairy processor further down the chain, it is energy and refrigeration. Either way it is the same discipline as any customer's data request: a number with the method behind it.

“The target is intensity, not a round total: the same milk with fewer emissions. A per-farm figure you can trace to its method is the one that survives into Fonterra's account.”

Why the per-farm baseline matters

How to respond

A first response to Fonterra

  • Build a per-farm footprint from herd, feed, fertiliser, fuel and electricity records
  • Account for the biological lines, enteric methane and nitrogen, not only energy
  • Apply recognised agricultural factors, and show the method behind each figure
  • Flag what is measured and what is estimated
  • Keep the source records together, so the intensity figure is defensible

Turn the Fonterra target into a defensible per-farm baseline. What our AI Sustainability Analyst gives a supplier:

Reads what you hold
Herd, feed, fertiliser, fuel and electricity records already on file, no new data collection to get started.
Accounts for the biological lines
Enteric methane and nitrogen alongside energy, with the method shown for each figure.
A baseline you can target from
The per-tonne intensity a reduction plan is set against, with the working attached.
Becomes your own report
The same baseline is your starting point the day you report in your own right.

Give Fonterra a per-farm baseline that stands up

Our AI Sustainability Analyst builds an on-farm footprint from your own herd, feed, fertiliser and energy records, with the method and evidence behind every figure, ready to plan reductions from.

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Frequently asked questions

Does Fonterra require its farmers to report emissions?+

Fonterra has an SBTi-aligned target to cut on-farm dairy emissions 30% per tonne of milk by FY30. On-farm emissions are more than 90% of its footprint, so supplying farmers are asked for a credible per-farm footprint.

What is Fonterra asking its milk suppliers to do?+

Fonterra has an SBTi-aligned target to reduce its Scope 1 and 3 FLAG emissions from dairy by 30% per tonne of fat and protein corrected milk by FY30, from an FY18 baseline. Because on-farm emissions are more than 90% of its footprint, the target depends on its farmer suppliers reducing emissions intensity, so expect requests for on-farm data and, over time, reduction plans.

What counts as on-farm emissions?+

The largest lines are biological: enteric methane from the herd and nitrous oxide from nitrogen fertiliser and effluent. Energy and fuel on the farm also count. These are measured per tonne of milk, so the target is about intensity, producing the same milk with fewer emissions, not only a total.

I supply milk to Fonterra. Where do I start?+

Start with a credible per-farm footprint built from records you already keep: herd numbers, feed, fertiliser use, fuel and electricity. Measure it honestly, with the method shown, then use that baseline to plan reductions. It is the same footprint you would need for your own reporting.

Sources

Primary sources, current at publication. Figures such as emission factors and penalty units are revised periodically. Check the source for the latest.

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