Fonterra Flags Emissions Rise on Output Growth

New Zealand dairy giant Fonterra has indicated that its greenhouse gas emissions are likely to increase in FY2026, driven primarily by a rise in milk production. The company signalled that higher output volumes—rather than efficiency setbacks—will be the key factor behind the expected emissions uptick, underscoring the ongoing tension between dairy growth and decarbonisation goals.

The development highlights a broader structural challenge for the global dairy sector, where scaling production to meet demand can directly elevate emissions footprints, even as companies pursue sustainability targets. With production expansion at the core of Fonterra’s outlook, the update reinforces concerns that absolute emissions may rise despite ongoing climate commitments, particularly in high-output dairy systems.

The announcement comes amid increasing scrutiny on agricultural emissions and intensifying pressure on dairy processors to balance volume growth, farmer returns, and net-zero pathways—a trade-off that is becoming more pronounced across leading global cooperatives.

Source: Dairynews7x7 24th March, 2026 Read full story here

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