NEW ZEALAND – Synlait Milk, a leading dairy business based in New Zealand, has partnered with Nestlé in funding an innovative initiative on farm emission reduction methods.

The joint effort, whose terms and investment remain undisclosed, will focus on initiatives such as effluent management systems, emissions-friendly feed options, advanced soil testing, alternative fertilizers, and tree planting.

According to the NZX-listed Synlait Milk, the partnership with Nestlé is instrumental in achieving its greenhouse gas emission targets.

The company revealed its goal to achieve a 30% reduction in on-farm greenhouse gas emissions per kilogram of milk solids by 2028, relative to its 2020 baseline.

Grant Watson, CEO of Synlait, expressed confidence about the collaboration, highlighting it as a proactive approach driven by industry-led solutions that prioritize innovation across the supply chain.

He noted Synlait’s Lead With Pride program, which financially incentivizes farmers to produce sustainable dairy, noting that the partnership with Nestlé will further accelerate progress.

In addition, the partnership, structured as a co-investment involving Synlait farmers, revealed a commitment to implementing practical solutions to enhance efficiency while reducing environmental impact.

“The partnership’s overarching goal is to reduce implementation costs and expedite farmer adoption of emissions reduction tools,” Grant said.

“Leveraging existing technologies and eventually incorporating emerging ones, the seven-year program aims to drive tangible results while fostering stronger business ties between Synlait and Nestlé.”

On the other hand, Patricia Stroup, Nestlé’s global chief procurement officer, emphasized the importance of collaboration in tackling emissions reduction challenges.

She highlighted the need for cooperation with dairy suppliers and farmers to develop climate-conscious strategies, while also noting Nestlé’s commitment to ongoing research and innovation in this field.

“Knowing this drives us to find new ways of working together, and means we need to collaborate with our dairy suppliers to adopt new ways to reduce emissions, and with farmers to create plans for climate, methane, and regenerative agriculture,” she noted.

“As our investigations continue, the most promising solutions are tested on research farms before being deployed more broadly. We are determined to draw on the best science worldwide while ensuring that we deliver solutions that are locally relevant for farmers.”

Meanwhile, Synlait has reportedly been facing challenges, including a contract dispute with A2 Milk, another dairy business in New Zealand, which is currently under arbitration.

Additionally, Synlait issued a profit warning for the first half of its fiscal 2024 year, anticipating a substantial loss.

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