Dairy Sustainability
A New Zealand Perspective
Jeremy Hill, Chief Science & Technology Officer, Fonterra Group
Professor Sustainable Nutrition, Riddet Institute
Ross Abercrombie, Project Manager, On Farm R&D, Fonterra Group
EDA Convention, Dublin 14 November 2018
Page 2Confidential to Fonterra Co-operative Group - November 2015
The Global Food
System is Complex
and not Sustainable
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The DELTA model
“We are developing a model to help solve one of the most
pressing issues facing the world - how to sustainably feed
everyone in the future, a future that will see an additional 1.1B
people by 2030 and possibly a global population of 10B by
2050.”
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DELTA Model Structure
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Increasing global
demand for food
• World facing significant
challenge to feed growing
population
– Increasing population
– Emerging economies /
middle class
– Recognition of protein’s vital
role in healthy diets
• Demand for animal derived
protein expected to double by
2050
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…combined with
increasing
environmental
constraints • Current systems can’t support
future demand while reducing
impact on environment
• Will be a gap in how much food
– particularly protein – can be
produced via existing methods
• Climate change working
against existing food
production systems
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New Zealand’s
Dairy Production
Carbon Farmprint
• New Zealand has less than 5
million people but produces
enough nutrition to feed 50
million people
• Agriculture represents
approximately 50% of New
Zealand’s GHG national
inventory - dairy 25%
• This is not because agriculture
and dairy in New Zealand is
carbon inefficient quite the
opposite
• Efficiency a result of
predominantly pasture fed farm
systems
25%National GHG emissions
from dairy
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New Zealand’s
Dairy Product
Carbon Farmprint • As a result of a climatic
advantage the pasture-based
dairy system in New Zealand is
a very carbon efficient source
of nutrition.
• This is the result of the
combination of breeding,
feeding and other farm
management practices.
<0.9KG CO2 equ.
per litre PFC milk
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New Zealand and Fonterra relative to Global GHG
Emissions
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Case Study
New Zealand
Farmprint
• Fonterra has conducted life cycle assessment
and reporting carbon footprint since 2007
• Carbon footprint (Cradle-to-Farm-Gate) of
Fonterra 0.87kgCO2/kg FPCM, contributes 85%
of total chain emissions in 2017
• Independent study (Chobtang et al 2017)
assessed high and low intensity dairy in Waikato,
median of 0.80kgCO2/kg FPCM
• World average 1.391
-2.42
kgCO2/kg FPCM with
worst up to 9kgCO2/kg FPCM
1. Clune et al 2017: Systematic review of greenhouse gas emissions for different fresh food categories. Journal of Cleaner
Production 140: 766-783.
2. Opio et al 2013: Greenhouse gas emissions from ruminant supply chains – A global life cycle assessment. UN (FAO),
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Comparisons of milks and plant-based
dairy alternatives
0
1
2
3
4
5
6
7
8
9
Sheep(Global)
Goats(Global)
Cows(Global)
Cows(NZ)
Soya(Global)
Almond(Global)
Coconut(Global)
kgC
O2
eq
/ kg
or
L p
rod
uct
Milk sourceSource: Various LCA studies of dairy
related products 2010-2016
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• Efficient dairy production system – feed conversion
efficiency from pasture – kgMS/ha focus
• High use of pasture vs concentrates
• Low use of arable cropping/fertilisers
• Animal longevity/lifespan and low replacement rate
Key factors driving
NZ low emission
intensity
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Product
Environmental
Footprinting
• Developed by European Commission since 2014
• PEF provides a multi factor LCA across 15 impact
categories
• Positives – international awareness, multiple impact
categories, uses LCA
• Challenges - large cost, complexity, and communication
• Potential – use to qualify brand claims and counter
unsubstantiated claims
• Fonterra engaged to understand pasture based dairy
systems
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Product
Environmental
Footprinting
Results
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Data and analysis:
• Complexity versus robustness
• On-farm stage critical, sound primary data essential
Communication:
• 15 Indicators versus 3-5 key indicators versus Single
score (normalised & weighted)?
• How will results be presented to the public?
• Risk of inappropriate use?
• Implications for comparisons across different food
products?
Product
Environmental
Footprinting
Challenges
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• Pastoral Greenhouse Gas Research Consortia – methane
inhibitors, vaccine, selective breeding, farm system
optimisation
• NZ Agriculture Greenhouse Gas Research Centre – low
nitrous oxide forages, optimising N fertiliser, soil carbon
stock assessments
• Global Research Alliance –international reach for science
collaborations
• Solutions to biological gases are applicable globally
NZ focus on
solutions to
reduce biological
emissions
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GRAIN – “Emissions
Impossible”
• Methodology - multiple FAO
GLEAM Oceania average
(1.6kgCO2eq/kgFPCM) x NZ
production equating to double
Fonterra emissions and greater
than full NZ Ag inventory
• Made claims of under reporting
emissions
• Grouped Fonterra and Dairy
Farmers of America together with
3 large beef companies to
compare against BIG oil
• Blogs and popular press picked up
this “fake news” story
• Conclusion – care required with
base data and calculations
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Rotz, C. A.
Journal of Dairy
Science 2018
• Based on “representative farms” without
background data or model assumptions
• Emission factors applied not clear – methane
differs in USA vs NZ
• Incorrect assumptions on cropping and levels
of feeding applied in models
• Presented at Conference and since cited by 4
in 2018
C. Alan Rotz USDA
Modelling greenhouse gas emissions from dairy farms
Journal of Dairy Science, 2018
http://doi.org?10.3168/jds.2017-13272
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• Dairy remains a staple for emission efficient nutrition to
nourish the world
• New Zealand dairy producers are amongst the most
emission efficient producers of dairy in the world
• Relevant data and must be used to determine GHG
footprints or significant misinterpretation can occur
• Practical Implementation of PEF will be challenging
• NZ remains committed to finding new solutions to
biological emissions alongside international
collaborations
Conclusions
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Thank you