Investing in Dairy Sustainability Through Tech and Incentives

A targeted program supports Fonterra farmers with funding, tools, and rewards to drive sustainability in the dairy supply chain.

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A new initiative set to enhance sustainability within the dairy supply chain will combine technology-driven solutions with performance-based incentives. Approximately half of the program’s funding will support 2,000 Fonterra dairy farmers with access to advanced, sustainability-focused tools and technologies. The remaining portion will be allocated as performance rewards, with around 165 farmers each receiving up to $15,000 USD annually for achieving key sustainability benchmarks.

Spanning 26,000 hectares—an area comparable to 50,000 NFL football fields—underscores a large-scale impact for the enterprise. Participating farms contribute to a dairy supply chain capable of producing milk for approximately 20 billion SNICKERS bars each year, highlighting the program’s relevance to global food production.

Driving Net Zero Goals Through Dairy Innovation

The Farmer Forward Program plays a key role in advancing Mars' Moo'ving Dairy Forward initiative, a strategy designed to cut emissions across its global dairy supply chain. Dairy remains the company’s fourth-largest contributor to carbon emissions, making it a critical area for sustainability efforts. By 2030, the program aims to reduce scope 3 dairy emissions by more than 150,000 metric tons compared to 2015 levels.

Mars has integrated sustainability into its business strategy without compromising growth. Since 2015, the company has reduced global greenhouse gas emissions by 16% while simultaneously increasing annual sales by 60%. These efforts align with its broader Net Zero Roadmap, which targets net-zero greenhouse gas emissions across its entire value chain by 2050.

Strengthening Supply Chain Collaboration for Long-Term Impact

For Fonterra, the initiative reinforces its commitment to supporting farmer-owners in their sustainability efforts. By collaborating with Mars, Fonterra is leveraging industry partnerships to drive meaningful reductions in emissions and improve long-term dairy sustainability.

This partnership also reflects a broader trend in corporate sustainability—addressing scope 3 emissions through supply chain collaboration.

Environment + Energy Leader