Energy Efficiency, GHG Emissions, Industrial  -  February 18, 2025

Nestle, Mars Partner for Farming Emissions Reduction

Food companies Mars and Nestlé entered a partnership to provide incentives for farmers to lower emissions.

The food companies collaborated with Fonterra, a dairy cooperative that collects, processes, and distributes milk and milk products. They have been working with Fonterra to make progress toward their individual sustainability goals by supporting farmers to reduce emissions.

The funding from separate agreements with Mars and Nestlé will be split between: 

• On-farm solutions: Farmers who achieve the co-operative difference will be eligible for access to on-farm tools or services designed to further improve emissions efficiency, for example herd efficiency services from LIC and CRV. Based on last season’s achievements, 87% of farmers would have been eligible.
• Extra 10-25 cents per kilograms of milk solids (kgMS) emissions incentive payment: Farmers who achieve the co-operative difference and have one of the lowest emissions footprints in the Co-op will receive an emissions incentive payment of between 10-25 cents per kgMS. Based on last season’s data, it is estimated that between 300-350 farms will be eligible for this payment next season. 

Amanda Davies, Mars snacking chief R&D, procurement and sustainability officer, said that between new equipment and technology, embracing more sustainable practices comes with a price tag for farmers.

“That’s why we’re working with partners like Fonterra to help remove this barrier — providing cash, tools, and technology to support farmers in making meaningful, long-term changes,” she said in a statement.

Nestlé New Zealand CEO Jennifer Chappell says Nestlé globally is a significant purchaser of New Zealand dairy ingredients, and dairy remains its largest source of GHG emissions.

“As we strive towards achieving net zero emissions by 2050, we are committed to reducing our Scope 3 emissions,” she said. “We will continue to support farmers, in partnership with Fonterra, fostering new economic opportunities and helping them lower their greenhouse gas emissions.”

Mars and Nestlé have independently supported Fonterra farmers with their sustainability actions through efficiency initiatives introduced over the past couple of seasons.

In addition, Fonterra announced new funding designed to build a stronger co-operative and continue to grow value for its shareholders through helping farmers reduce on-farm emissions.  

For the 2025/26 season beginning on June 1, Fonterra will introduce a payment for farms that achieve certain emissions-related criteria as part of updates to its Co-operative Difference framework. 

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