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TFT working with a global dairy co-operative in New Zealand
TFT working with a global dairy co-operative in New Zealand
News Dec 19, 2017

Fonterra becomes TFT's first dairy member

Since January 2019, TFT has become Earthworm Foundation.

We are pleased to announce that Fonterra is the first global dairy company to become a TFT member. Fonterra is a dairy co-operative owned by 10,000 farmer shareholders in New Zealand, but its operations reach across four continents, and well beyond the farm gate. Fonterra is the world’s largest processor and exporter of dairy products, delivering high-quality dairy ingredients and branded dairy products in over 100 countries under well-known brands such as Anchor, Anlene, Anmum, Fernleaf, Mainland and Soprole.

We have undertaken some preliminary work with Fonterra to develop their own Palm Products Standard and to obtain an overview of their supply chain. This has led to Fonterra’s membership and related work plan focused on palm products in the their supply chain, which adds to the wide range of Fonterra programmes covering aspects of Nutrition, Environment, Community, Quality products and services, and Health and Safety.

Fonterra uses oil palm products in two main ways: palm kernel expeller (PKE) meal/cake imported as a dairy feed, and ingredients derived from palm used in a limited number of dairy products. Their use of oil palm products is primarily through the use of palm kernel expeller (PKE) as a supplementary feed on farms. Approximately 30 per cent of PKE imports into New Zealand are procured through International Nutritionals Ltd (INL), a joint venture with Wilmar International Limited. PKE is sold through Fonterra Farm Source retail stores.

Fonterra released their Palm Products Standard in August 2016, committing to responsible sourcing of palm products. The Standard outlines a commitment to working with suppliers and stakeholders to ensure there is No Deforestation, No Peatland Development, and No Exploitation of people and communities. It includes a target to procure 100% RSPO segregated supply of palm oil products, and reach 100% traceability to mill, with time-bound plans to achieve traceability to plantation by the end of 2018.

Fonterra have identified the direct suppliers of all palm products, and are now focussing attention on obtaining information on suppliers further up the supply chain. TFT and Fonterra have agreed on a number of activities to contribute to industry transformation, engage with farmers, and disclose our progress.

Director of Social Responsibility for Fonterra Ms Carolyn Mortland said among the advantages of working with TFT is their strong engagement across the industry that will be pivotal to creating change. “Being a member of TFT will help us implement our Palm Products Standard and support transformation towards sustainable and socially responsible palm production,” Ms Mortland said.

Related News:

Areas of work:
Healthy Forests

Palm oil

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