Fonterra#Fonterra Research and Development Centre

File:Fonterra Facility Near Hamilton.jpg north of Hamilton]]

The first dairy co-operative in New Zealand was established in Otago in 1871. By 1920, there were 600 dairy processing factories of which about 85% were owned by co-operatives.{{cite encyclopedia |first1=Hugh |last1=Stringleman |first2= Frank |last2=Scrimgeour |url= http://www.teara.govt.nz/en/dairying-and-dairy-products/3 |title=Dairying and dairy products – Co-operatives and centralisation |encyclopedia=Te Ara – the Encyclopedia of New Zealand |date=1 March 2009 |access-date=14 October 2010 |isbn= 978-0-478-18451-8 |publisher=Ministry for Culture and Heritage / Te Manatu Taonga }} In the 1930s there were around 500 co-operativesPhilpott, H.G. (1937). A History of the New Zealand Dairy Industry: 1840–1935. Government Printer: Wellington but after World War II, improved transportation, processing technologies and energy systems led to a trend of consolidation, where the co-operatives merged and became larger and fewer in number.Ward, A.H. (1975). A Command of Cooperatives. The New Zealand Dairy Board: Wellington By the end of the 1990s, there were only four co-operatives nationwide: the Waikato-based New Zealand Dairy Group, the Taranaki-based Kiwi Co-operative Dairies, Westland Milk Products, and Tatua Co-operative Dairy Company.

Fonterra was formed in 2001 from the merger of the two largest co-operatives, New Zealand Dairy Group and Kiwi Co-operative Dairies, together with the New Zealand Dairy Board, which had been the marketing and export agent for all the co-operatives.{{cite news|title=Global Co renamed Fonterra|url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=210995|access-date=15 February 2017|work=The New Zealand Herald |date=27 August 2001}} Fonterra effectively has monopsony control of the New Zealand domestic and export dairy industry.{{cite journal |url=https://ir.canterbury.ac.nz/server/api/core/bitstreams/c1272111-1ff2-41c7-bc90-6add5b2ec133/content |title=An Entrepreneurial Innovation: Mega Cooperatives |journal=Asia Pacific Journal of Innovation and Entrepreneurship |volume=4 |number=1 |year=2010 |author1=Leo Paul Dana |author2=Jason Schoeman |pages=67–88 }}{{Citation needed|date=December 2019}} The merger was initially turned down by the New Zealand Commerce Commission, but later approved by the New Zealand Government,{{cite news|last1=Stevenson|first1=Philippa|title=Cabinet approves dairy merger waiver|url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=182013|access-date=15 February 2017|date=9 April 2001 |work=The New Zealand Herald }}{{cite web |url=http://www.referenceforbusiness.com/history2/48/Fonterra-Co-Operative-Group-Ltd.html |title=Fonterra Co-Operative Group Ltd Company Profile, Information, Business Description, History, Background Information on Fonterra Co-Operative Group Ltd |publisher=Reference For Business|year=2010 |access-date= 14 October 2010}} with subsequent legislation deregulating the dairy industry, allowing for the export of dairy products to be undertaken by any company. The two smaller co-operatives, Tatua and Westland (which would later be acquired by Yili Group in 2019), did not join Fonterra, instead remaining independent.

The company has an annual revenue of around NZ$22 billion. Its core business consists of exporting dairy products under the NZMP brand (95% of its New Zealand production is exported). It also operates a fast-moving consumer goods business for dairy products, Fonterra Brands. Fonterra has a number of subsidiaries and joint-venture companies operating in markets around the world.

In 2005, the company purchased a large factory in Dennington, Victoria, Australia, from Nestlé, after they moved out of the collection of milk from farmers and the manufacture of powdered milk in Australia.{{cite news |url=http://news.smh.com.au/business/nestle-sells-desserts-to-fonterra-20080624-2w28.html |title=Nestle sells desserts to Fonterra |newspaper=The Sydney Morning Herald |author=AAP |date=24 June 2008 |access-date=29 October 2010 |archive-url=https://web.archive.org/web/20120820152734/http://news.smh.com.au/business/nestle-sells-desserts-to-fonterra-20080624-2w28.html |archive-date=20 August 2012 |url-status=dead}} Also in 2005 the company made moves towards purchasing Australian companies Dairy Farmers and National Foods. It also converted its 50 per cent stake in Victoria dairy producer Bonlac to full ownership. At this time $1 billion of Fonterra's revenue was from Australian sales, which was 14 per cent of the dairy products it sells around the world.{{cite news |url=http://www.smh.com.au/news/business/fonterra-ogles-dairy-farmers-brands/2005/10/31/1130720482035.html|title=Fonterra ogles Dairy Farmers' brands|newspaper=The Sydney Morning Herald |author=Jeff Turnbull|date=1 November 2005|access-date=19 October 2008}}

In June 2008, the company acquired the yoghurt and dairy dessert business of Nestlé Australia, which it on-sold to Parmalat Australia in December 2015.{{Cite press release|url=https://www.fonterra.com/au/en/hub+sites/news+and+media/media+releases/fonterra+to+sell+australian+yoghurt+dairy+desserts+business/fonterra+to+sell+australian+yoghurt+dairy+desserts+business|title=Fonterra to sell Australian yoghurt dairy desserts business|publisher=Fonterra|access-date=4 October 2016|archive-url=https://web.archive.org/web/20161005131601/https://www.fonterra.com/au/en/hub+sites/news+and+media/media+releases/fonterra+to+sell+australian+yoghurt+dairy+desserts+business/fonterra+to+sell+australian+yoghurt+dairy+desserts+business|archive-date=5 October 2016|url-status=dead}}{{date missing|date=June 2017}}

In 2010, leaked US embassy cables suggested New Zealand had only sent troops to Iraq in 2003, following the initial invasion, so Fonterra would keep valuable Oil for Food contracts. New Zealand was not a member of the coalition which supported invasion of the country, but later sent combat engineers for mine clearance and other such tasks.{{cite news|url=http://www.3news.co.nz/Fonterra-contract-behind-NZ-involvement-in-Iraq/tabid/419/articleID/191612/Default.aspx|publisher=3 News NZ|title=Fonterra contract behind NZ involvement in Iraq|date=20 December 2010|access-date=18 March 2013|archive-url=https://web.archive.org/web/20140221145534/http://www.3news.co.nz/Fonterra-contract-behind-NZ-involvement-in-Iraq/tabid/419/articleID/191612/Default.aspx|archive-date=21 February 2014|url-status=dead}}{{cite news|url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10695604 |work=The New Zealand Herald |title=NZ in Iraq to help Fonterra – cable|date=20 December 2010}}

In 2019, the Tip Top ice cream brand was sold for NZ$380 million to Froneri, a global joint venture between Nestlé and PAI Partners.{{cite web |url=https://www.reuters.com/article/us-fonterra-divestiture/nzs-fonterra-sells-tip-top-ice-cream-to-froneri-for-250-million-idUSKCN1SI0NG |title=NZ's Fonterra sells Tip Top ice cream to Froneri for $250 million |last=Warrick |first=Ambar |date=13 May 2019 |website=Reuters |publisher=Parent |access-date=19 May 2019}}{{cite web |url=https://www.stuff.co.nz/business/industries/112666428/fonterra-sells-ice-cream-brand-tip-top-to-ukbased-company-froneri |title=Fonterra sells Tip Top to global ice cream giant Froneri for $380m |last=Anthony |first=John |date=13 May 2019 |website=Stuff |publisher=Nine Publishing |access-date=19 May 2019}}{{cite web |url=https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12230279 |title=Tip Top sale: Fonterra sells ice cream company to dairy giant Froneri |author= |date=13 May 2019 |website=The New Zealand Herald |publisher=New Zealand Media and Entertainment |access-date=19 May 2019}}

In September 2019, Fonterra agreed to sell its 50% stake in DFE Pharma for NZ$633 million ($400.37 million).{{Cite web|url=https://www.dairyreporter.com/Article/2019/09/26/Fonterra-sells-DFE-Pharma-share-to-reduce-debts|title=Fonterra sells DFE Pharma share to reduce debts|website=dairyreporter.com|date=26 September 2019 |language=en-GB|access-date=26 September 2019}}{{Cite news|url=https://www.reuters.com/article/us-fonterra-divestiture-idUSKBN1W92XN|title=New Zealand's Fonterra sells its 50% stake in DFE Pharma for $400 million|date=24 September 2019|work=Reuters|access-date=26 September 2019|language=en}}

In late February 2022, Fonterra suspended exports to Russia in protest of the 2022 Russian invasion of Ukraine. The company had exported NZ$240 million worth of produce to Russia in 2021.{{cite news |title=Fonterra suspends shipments to Russia |url=https://www.rnz.co.nz/news/national/462436/fonterra-suspends-shipments-to-russia |access-date=29 March 2022 |work=Radio New Zealand |date=28 February 2022 |archive-url=https://web.archive.org/web/20220321085056/https://www.rnz.co.nz/news/national/462436/fonterra-suspends-shipments-to-russia |archive-date=21 March 2022|url-status=live}} On 21 March, Fonterra closed its office in Moscow and withdrew from its joint venture with Russian company Unifood.{{cite news |title=Fonterra to 'exit its business' in Russia following the invasion of Ukraine |url=https://www.rnz.co.nz/news/business/463708/fonterra-to-exit-its-business-in-russia-following-the-invasion-of-ukraine |access-date=29 March 2022 |work=Radio New Zealand |date=21 March 2022 |archive-url=https://web.archive.org/web/20220321212446/https://www.rnz.co.nz/news/business/463708/fonterra-to-exit-its-business-in-russia-following-the-invasion-of-ukraine |archive-date=21 March 2022|url-status=live}}

In mid May 2024, Fonterra announced plans to sell its global consumer business as part of a shift towards becoming a global business-to-business supplier of dairy nutrition products. The company's consumer business brands included Anchor, Mainland, Kapiti, Anlene, Anmum, Fernleaf, Western Star, and Perfect Italiano; which comprise 15% of the co-op's total milk solids. Other brands affected by the proposed divestment include its subsidiaries Fonterra Oceania and Fonterra Sri Lanka. In addition, the divestment could affect Fonterra's 17 manufacturing sites including three facilities in New Zealand.{{cite news |title=Fonterra considers selling global consumer business including Anchor, Mainland, Kāpiti brands |url=https://www.rnz.co.nz/news/business/516953/fonterra-considers-selling-global-consumer-business-including-anchor-mainland-kapiti-brands |access-date=17 May 2024 |work=RNZ |date=16 May 2024 |archive-url=https://web.archive.org/web/20240516065220/https://www.rnz.co.nz/news/business/516953/fonterra-considers-selling-global-consumer-business-including-anchor-mainland-kapiti-brands |archive-date=16 May 2024|url-status=live}}{{Cite web |last1=Renwick |first1=Alan |last2=Dean |first2=David |date=2024-05-21 |title=Farewell Anchor, Fresh'n Fruity and Mainland: what's behind Fonterra's decision to sell its consumer brands? |url=http://theconversation.com/farewell-anchor-freshn-fruity-and-mainland-whats-behind-fonterras-decision-to-sell-its-consumer-brands-230401 |access-date=2024-06-17 |website=The Conversation |language=en-US}}

On 11 November, Fonterra confirmed that it would be selling its consumer brands including Anchor, Mainland, Kāpiti, Anlene, Anmum, Fernleaf, Western Star, Perfect Italiano. The company also confirmed that it would sell its subsidiaries Fonterra Oceania and Fonterra Sri Lanka, as well as its 17 manufacturing sites including its three New Zealand facilities.{{cite news |last1=Beckford |first1=Gyles |title=Fonterra pushes ahead with sale of Anchor, Mainland brands |url=https://www.rnz.co.nz/news/business/533434/fonterra-pushes-ahead-with-sale-of-anchor-mainland-brands |access-date=12 November 2024 |work=RNZ |date=11 November 2024 |archive-url=https://web.archive.org/web/20241111005720/https://www.rnz.co.nz/news/business/533434/fonterra-pushes-ahead-with-sale-of-anchor-mainland-brands |archive-date=11 November 2024}}

File:FRDC-front-2.jpg]]

In 1927 the New Zealand Dairy Research Institute (NZDRI) was founded in Palmerston North as part of the Department of Scientific Industrial Research, which was renamed to the Fonterra Research and Development Centre (FRDC) when Fonterra was formed in 2001.{{cite journal |doi=10.1046/j.1471-0307.2003.00111.x |title=The Fonterra Research Centre |journal=International Journal of Dairy Technology |volume=56 |issue=3 |pages=127–132 |year=2003 |last1=Hill |first1=Jeremy |doi-access=free}}{{Cite news|url=https://www.stuff.co.nz/business/farming/dairy/95368991/fonterras-research-and-development-centre-in-palmerston-north-is-90yearsold |title=Fonterra's research and development centre in Palmerston North is 90-years-old|date=4 August 2017|work=Stuff |access-date=12 April 2023}}{{Cite news|url=https://www.nzherald.co.nz/the-country/listen/fonterras-research-and-development-centre-celebrates-95-years/ETH2S6MW3ZLME53T6CCUCSJSFM/ |title=Fonterra's Research and Development Centre celebrates 95 years|date=22 April 2022|work=The New Zealand Herald |access-date=12 April 2023}} FRDC is purportedly one of the largest dairy research centres in the world, and as of 2019, it hosts several hundred engineers, scientists and researchers and holds 350 milk related patents.{{Cite web|url=https://www.fonterra.com/nz/en/our-stories/articles/our-home-of-milk-goodness.html|title=Our home of milk goodness|website=Fonterra.com|publisher=Fonterra|access-date=12 April 2023}}{{Cite web|url=https://www.nzmp.com/global/en/about-nzmp/innovation-and-ingenuity/the-fonterra-research-and-development-centre.html|title=The Fonterra Research and Development Centre|website=nzmp.com|publisher=NZMP|access-date=12 April 2023}} A large number of technologies involving whey, casein, lactoferrin, nisin, anhydrous milk fat, as well as cheesemaking and milk powder production have been developed at the centre.

FRDC has a substantial library of over 100,000 cheese starter cultures, which began in the 1930s under Hugh Whitehead.{{Cite web|url=https://teara.govt.nz/en/biographies/5w25/whitehead-hugh-robinson|title=P. S. Robertson. 'Whitehead, Hugh Robinson', Dictionary of New Zealand Biography, first published in 2000. |date=2000|website=Te Ara – the Encyclopedia of New Zealand Research|language=en-nz|access-date=30 April 2023}}{{Cite news|url=https://www.stuff.co.nz/business/farming/dairy/95368991/fonterras-research-and-development-centre-in-palmerston-north-is-90yearsold |title=Fonterra cheese starter cultures date back to 1930s in Palmerston North library|date=17 May 2017 |last=Galloway |first=Jill |work=Stuff |access-date=12 April 2023}} The centre has pioneered research on bacteriophages; in 1935 a bacteriophage was identified as the cause of failure in cheese starter isolates, and in 1992 the centre sequenced the genome of bacteriophage c2, which was the first whole genome to be sequenced in New Zealand.{{cite journal |doi=10.1016/0958-6946(95)00040-2 |title=Sequencing and analysis of the genome of lactococcal phage c2 |journal=International Dairy Journal |volume=5 |issue=8 |pages=963–976 |year=1995 |last1=Jarvis|first1=A.W. |last2=Lubbers|first2=M.W. |last3=Waterfield|first3=N.R. |last4=Collins|first4=L.J. |last5=Polzin|first5=K.M. |doi-access=}}{{cite journal |doi=10.1128/aem.61.12.4348-4356.1995 |title=Sequencing and analysis of the prolate-headed lactococcal bacteriophage c2 genome and identification of the structural genes |journal=Applied and Environmental Microbiology |volume=61 |issue=12 |pages=4348–4356 |year=1995 |last1=Lubbers|first1=Mark W. |last2=Waterfield|first2=Nick R. |last3=Beresford|first3=Tom P.J. |last4=Le Page|first4=Richard W.F. |last5=Jarvis|first5=Audrey W.|pmid=8534101 |pmc=167745 |bibcode=1995ApEnM..61.4348L |doi-access=}}

John Roadley was the inaugural chairman of Fonterra's board. He foreshadowed his resignation in August 2002 and was succeeded, after the next annual general meeting, by Henry van der Heyden.{{cite news |last1=Stevenson |first1=Philippa |title=Van der Heyden catapulted into top job at Fonterra |url= https://www.nzherald.co.nz/the-country/news/article.cfm?c_id=16&objectid=2350509 |access-date=6 June 2020 |work=The New Zealand Herald |date=21 August 2002}} Van der Heyden held the chairmanship until December 2012.{{cite news |last1=Fox |first1=Andrea |title=Hooray Henry? No, there's plenty still to do |url= http://www.stuff.co.nz/business/8285109/Hooray-Henry-No-theres-plenty-still-to-do |access-date=6 June 2020 |work=BusinessDay.co.nz |date=12 February 2013}} John Wilson succeeded van der Heyden and announced his resignation in July 2018 due to illness (he died in January 2019 aged 54).{{cite news |title=Former Fonterra chairman John Wilson dies |url= https://www.odt.co.nz/rural-life/dairy/former-fonterra-chairman-john-wilson-dies |access-date=6 June 2020 |work=Otago Daily Times |date=28 January 2019}} John Monaghan succeeded Wilson.{{cite news |last1=Mckay |first1=Christine |title=Tararua man John Monaghan now at helm of Fonterra |url=https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12096366 |access-date=6 June 2020 |work=Hawkes Bay Today |date=30 July 2018}} He is the current chairperson and in March 2020, he foreshadowed that he would step down in November 2020.{{cite news |title=Fonterra chairman John Monaghan standing down |last1=Edmunds |first1=Susan |last2=Hutching |first2=Gerard |url=https://www.stuff.co.nz/business/farming/120026856/fonterra-chairman-john-monaghan-standing-down |access-date=6 June 2020 |work=Stuff |date=5 March 2020}} In June 2020, Peter McBride was announced as Monaghan's successor.{{cite news |last1=Foxcroft |first1=Debrin |title=Fonterra names Peter McBride as new chairman |url=https://www.stuff.co.nz/business/farming/121952104/fonterra-names-peter-mcbride-as-new-chairman |access-date=26 June 2020 |work=Stuff |date=26 June 2020}}

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• Fonterra Brands – consumer goods business
• NZMP Ingredients – global ingredients business
• Fonterra Global Dairy Trade – dairy ingredients supplier to the globally traded market
• Anchor Food Professionals – foodservices supplies
• Fonterra Group Manufacturing – food processing and manufacturing operations
• Fonterra Milk Supply – collection and distribution of milk from farms
• Shared Services – finance, communications, M&D, human resources, strategy and information services
• Farm Source (formerly RD1) – is a wholly owned rural retail and farmer support supplier. RD1 was formed at the end of 2001 through the merger of RD1.com and the Town & Country Agri-centres, Fonterra's two rural supply companies. In 2014, Farm Source was launched as a new brand platform for RD1 and provides retail benefits including Farm Source Rewards. Farm Source is also the farmer support business unit, with Area Managers, Sustainable Dairying Advisors and Technical Sales Representatives providing on-farm tools and advice for farmers, such as Farm Environment Plans. Farm Source is New Zealand's largest retailer of agricultural supplies to dairy farmers. There are 66 Farm Source stores across New Zealand as well an online ecommerce offer.

File:Riverina Fresh.jpg, Australia]]

In November 2007, the board of directors announced[http://www.fonterra.com/wps/wcm/connect/fonterracom/fonterra.com/our+business/news/media+releases/fonterra_announces_start_of_capital_structure_consultation_programme Fonterra announces start of Capital Structure consultation programme] {{Webarchive|url=https://web.archive.org/web/20080216033047/http://www.fonterra.com/wps/wcm/connect/fonterracom/fonterra.com/our+business/news/media+releases/fonterra_announces_start_of_capital_structure_consultation_programme |date=16 February 2008 }}, Media release, Fonterra website, November 2007. a two-year consultation programme regarding their preferred capital re-structuring option: putting the business operations in a separate publicly listed company, with the co-operative maintaining a controlling interest. The aim was to give more access to funds for global growth.

Praised by some[http://www.milfordasset.com/publications?objectId=5aa7ef38-81bd-4b93-8e05-a8edb1232a02 'Fonterra listing a win-win-win situation'] {{webarchive|url=https://web.archive.org/web/20081014063436/http://www.milfordasset.com/publications?objectId=5aa7ef38-81bd-4b93-8e05-a8edb1232a02 |date=14 October 2008}}, Brian Gaynor, Milford Asset Management website, retrieved 11 June 2008.{{Cite news|url=http://www.nzherald.co.nz/section/1/story.cfm?c_id=1&objectid=10476604|title=A bold step forward for Fonterra |newspaper=The New Zealand Herald |archive-url=https://web.archive.org/web/20121014121901/http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10476604|archive-date=14 October 2012|access-date=5 September 2019|url-status=dead|quote=The global ambitions enunciated at its birth have not been translated into action. That may, however, be about to change if dairy farmers embrace the bold path outlined by Fonterra management |date=17 November 2007}} as a bold move which would allow better access to outside capital, the proposals encountered significant opposition from both farmer shareholders and the government (who would be required to pass enabling legislation). Despite including a range of safeguards, farmers were clearly concerned at the risk of losing control; in what was sometimes described as a demutualization.

The board responded in 2008 by shelving the November 2007 proposal and continuing consultation and discussion with farmer shareholders. In September 2009, the board announced a three-step process to revamp Fonterra's capital structure.{{cite news |first=Edward |last=Gay |title=Fonterra offers farmers more shares in new capital {{notatypo|strucuture}}

|date=1 September 2009 |publisher=APN |url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10598184 |newspaper=The New Zealand Herald |access-date=13 August 2010}} The new approach abandoned thoughts of a public listing of Fonterra shares and retained 100% farmer control and ownership of the co-operative.

A key goal of the capital structure changes was to stop large amounts of money washing in and out of Fonterra's balance sheet each year as milk production fluctuates.{{cite news |first=Andrea |last=Fox |title=Fonterra could face 'acute' pressure |date=30 June 2010 |publisher=Fairfax |url=http://www.stuff.co.nz/business/farming/3869196/Fonterra-could-face-acute-pressure |work=Businessday.co.nz |access-date=13 August 2010}} Under the previous structure, farmers matched their shareholding with their milk production by owning one co-operative share for each kilogram of milksolids (kgMS) produced annually.{{cite press release |title=Three-step process to strengthen Fonterra |date=18 September 2009 |url=http://www.fonterra.com/wps/wcm/connect/fonterracom/fonterra.com/our+business/news/media+releases/three-step+process+to+strengthen+fonterras+capital+structure+that+retains+100pc+farmer+control+and+ownership |publisher=Fonterra |access-date=13 August 2010 |archive-url=https://web.archive.org/web/20101010062204/http://fonterra.com/wps/wcm/connect/fonterracom/fonterra.com/our+business/news/media+releases/three-step+process+to+strengthen+fonterras+capital+structure+that+retains+100pc+farmer+control+and+ownership |archive-date=10 October 2010 |url-status=dead}} If their milk production dropped in any season, they could redeem shares back to the co-operative, which was required to buy the shares back off them. Consequently, Fonterra faced the risk of losing large amounts of share capital through redemptions during times of declining milk production.{{cite news |title=Farmers give Fonterra green light |date=30 June 2010 |publisher=APN |url=http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10655487 |newspaper=The New Zealand Herald |access-date=13 August 2010}} For instance, after milk production fell during the 2007/08 drought, Fonterra had to pay out $742 million of share capital to farmers via redemptions.

The capital structure changes also sought to provide greater incentives for farmers to increase their investment in Fonterra shares, helping ensure Fonterra has sufficient share capital to fund profitable business opportunities and drive a higher payout to dairy farmers.{{cite news |author=NZPA |author-link=NZPA |title=Carter urges farmers to vote on Fonterra capital |date=17 June 2010 |url=http://www.nbr.co.nz/article/carter-urges-farmers-vote-fonterra-capital-124706 |newspaper=National Business Review |access-date=13 August 2010 |archive-date=11 June 2011 |archive-url=https://web.archive.org/web/20110611002308/http://www.nbr.co.nz/article/carter-urges-farmers-vote-fonterra-capital-124706 |url-status=dead }}

The first two steps of capital structure change received good support from farmer shareholders at Fonterra's annual meeting in November 2009.{{cite news |title=Fonterra capital restructure approved |date=18 November 2009 |publisher=APN |url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10610128 |newspaper=The New Zealand Herald |access-date=13 August 2010}} The first step allowed farmers to hold shares above their level of annual milk production; farmers could now own an additional 20% of "dry" shares (i.e. up to a maximum of 1.2 shares per kgMS).{{cite press release |title=Three-step process to strengthen Fonterra |date=18 September 2009 |url=http://www.fonterra.com/wps/wcm/connect/fonterracom/fonterra.com/our+business/news/media+releases/three-step+process+to+strengthen+fonterras+capital+structure+that+retains+100pc+farmer+control+and+ownership |publisher=Fonterra.com |access-date=13 August 2010 |archive-url=https://web.archive.org/web/20101010062204/http://fonterra.com/wps/wcm/connect/fonterracom/fonterra.com/our+business/news/media+releases/three-step+process+to+strengthen+fonterras+capital+structure+that+retains+100pc+farmer+control+and+ownership |archive-date=10 October 2010 |url-status=dead}} There were also enhanced incentives for farmers to hold shares even if their production falls. The rules about the pricing of end of season share transactions were also tidied up.

The second step changed the way Fonterra shares were valued to reflect that share ownership is restricted to farmers only. Previously, Fonterra shares were valued on a theoretical basis as if the shares were freely traded like a public share. An independent valuator subsequently assessed that the restricted market value should be at a 25% discount to the freely traded value.{{cite news |title=Three-step process to strengthen Fonterra |date=18 September 2009 |url=http://www.fonterra.com/wps/wcm/connect/fonterracom/fonterra.com/our+business/news/media+releases/three-step+process+to+strengthen+fonterras+capital+structure+that+retains+100pc+farmer+control+and+ownership |publisher=Fonterra |access-date=13 August 2010 |archive-url=https://web.archive.org/web/20101010062204/http://fonterra.com/wps/wcm/connect/fonterracom/fonterra.com/our+business/news/media+releases/three-step+process+to+strengthen+fonterras+capital+structure+that+retains+100pc+farmer+control+and+ownership |archive-date=10 October 2010 |url-status=dead}}

The third step, titled "Trading Among Farmers", involves more far-reaching change to Fonterra's capital structure. The co-operative would no longer be obliged to issue or redeem shares at a price established via an independent valuation process. Instead, farmers would buy or sell shares among themselves at market prices through a farmer-only share trading market. This would have the effect of making Fonterra shares permanent capital, providing the co-operative with more confidence to invest in long-term projects without fear that some of its share capital might be needed to fund redemptions in future years.{{cite news |first=Tracy |last=Withers |title=Fonterra Farmers Approve Plan Allowing Share Trading |date=29 June 2010 |publisher=Bloomberg |url=http://www.businessweek.com/news/2010-06-29/fonterra-farmers-approve-plan-allowing-share-trading.html |archive-url=https://web.archive.org/web/20110416205305/http://www.businessweek.com/news/2010-06-29/fonterra-farmers-approve-plan-allowing-share-trading.html |url-status=dead |archive-date=16 April 2011 |newspaper=Bloomberg Businessweek |access-date=13 August 2010}}

As part of the changes, farmers would have greater flexibility with their Fonterra shareholding. The maximum shareholding would be 2 times production (up from the 1.2 times approved in step one) and farmers would have up to three years to comply with shareholding rules when entering/exiting the co-operative or increasing/decreasing their milk production.

Additionally, Fonterra would set up a special fund that would financially help farmers purchase shares (or retain shares they would otherwise have to sell). The fund would pay farmers for the right to receive dividends and the gain/loss from any changes in value of some of their shares, but the farmer would still be the owner of the shares. The fund would raise the money it needed to pay farmer shareholders by selling investment units to investors.{{cite news |title=Farmers agree to radical Fonterra plan |date=30 June 2010 |url=http://tvnz.co.nz/business-news/fonterra-asks-farmers-support-3619509 |archive-url=https://web.archive.org/web/20110613190833/http://tvnz.co.nz/business-news/fonterra-asks-farmers-support-3619509 |archive-date=13 June 2011 |publisher=TVNZ |url-status=dead |access-date=5 September 2019}} Fonterra would require the fund to target "friendly" investors such as sharemilkers, retired farmers and offshore Fonterra suppliers, although the public and institutions would also be able to participate.

The "Trading Among Farmers" proposal went before a special meeting on 30 June 2010 and received 89% support from farmer shareholders voting, easily exceeding the 75% threshold required for a favourable vote.{{cite news |first=Andrea |last=Fox |title=Farmers vote to trade shares |date=30 June 2010 |publisher=Fairfax |url=http://www.stuff.co.nz/the-press/business/christchurch-business/3870288/Farmers-vote-to-trade-shares |work=The Press |access-date=13 August 2010}}

In May 2021, Fonterra started a consultation process to seek farmer feedback on potential options to change its capital structure.{{Cite web |last=Lewis |first=John |date=2021-12-10 |title=Fonterra revamp hailed |url=https://www.odt.co.nz/rural-life/dairy/fonterra-revamp-hailed |access-date=2022-11-14 |website=Otago Daily Times |language=en}}

Based on farmer feedback over the consultation period{{Cite web |last=Flaws |first=Bonnie |date=2021-07-18 |title=Share milkers and contractors could own Fonterra shares in proposed capital restructure |url=https://www.stuff.co.nz/business/farming/125791576/share-milkers-and-contractors-could-own-fonterra-shares-in-proposed-capital-restructure |access-date=2022-11-14 |website=Stuff |language=en}} as well as further expert advice, a proposal was put forward in September 2021 to move to a Flexible Shareholding structure, aimed at giving farmers more financial flexibility.{{Cite web |title=Flexible Shareholding structure is best option for farmers and Co-op |url=https://www.dairy-international.com/news/home/flexible-shareholding-structure-proposed-as-best-option-for-farmers-and-co-op/ |access-date=2022-11-14 |website=IDM |language=en-GB}}

In December 2021, the new Flexible Shareholding structure received a strong mandate with [85.16%] of total farmer votes cast in support of the recommendation and [82.65%] participation based on milk solids voted. 

Fonterra is continuing to work with the Government on how the Flexible Shareholding structure can be given effect under the Dairy Industry Restructuring Act, the legislation that enabled the formation of Fonterra back in 2001.{{Cite web |title=Fonterra challenges milk price 'gaming' perceptions |url=https://www.nzherald.co.nz/business/fonterra-challenges-milk-price-gaming-perceptions-as-it-seeks-capital-restructure-green-light/DJ6PPNSASRDIQU3E7LHSXY6MAY/ |access-date=2022-11-14 |website=The New Zealand Herald |language=en-NZ}}

File:Fonterra milk powder factory in Heerenveen, The Netherlands.jpg, The Netherlands]]

{{Div col|colwidth=30em}}

• Anchor (milk)
• Anlene
• Anmum
• Mainland (cheese, butter)
• NZMP (ingredients)
• Anchor Food Professionals (foodservice supplies)
• Nutiani

{{Div col end}}

{{Div col|colwidth=30em}}

• Anchor (milk, cream, butter, yoghurt)
• Anchor CalciYum (flavoured milk, custard yoghurt, ice cream)
• Anchor Uno (Children's yoghurt)
• Anmum
• BioKodeLab
• Country Goodness (butter-margarine blend spread, cultured sour cream dips)
• De Winkel (yoghurt)
• Fresh 'n Fruity (yoghurt)
• Galaxy (speciality cheese)
• Kapiti (ice cream, speciality cheese, yoghurt)
• Mainland (cheese, butter)
• Mammoth Supply Co. (flavoured milk)
• Perfect Italiano (cheese)
• Primo (flavoured milk)
• Tip Top (ice cream) – Sold to Froneri in 2019

{{Div col end}}

{{Div col|colwidth=30em}}

• Bonlac{{cite news |title = Bonlac bid just start for Fonterra

|url = http://www.smh.com.au/news/Business/Bonlac-bid-just-start-for-Fonterra/2005/06/07/1118123838263.html

|newspaper = The Sydney Morning Herald

|access-date = 5 April 2008 | date=8 June 2005

}}

• Anchor CalciYum
• Anchor (milk and cream)
• Mainland (cheese & butter)
• Mammoth Energy
• Munchables
• Perfect Italiano
• Western Star (butter){{cite web|last=Fonterra|title=Our Brands|url=http://www.fonterra.com/au/en/Our+Products/Our+Brands|publisher=Fonterra|access-date=25 April 2013|archive-url=https://web.archive.org/web/20130419054130/http://www.fonterra.com/au/en/Our+Products/Our+Brands|archive-date=19 April 2013|url-status=dead}}

{{Div col end}}

{{Div col|colwidth=30em}}

• Ratthi (milk powder, yoghurt)
• Anchor Newdale (flavoured milk, yoghurt, drinking yoghurt)
• Red Cow (2 in 1 milk powder)
• anlene
• Anchor (milk, milk powder, butter)
• Anchor non fat
• Anchor Family Pro +
• Anchor Pediapro

{{Div col end}}

Dairying stock entering waterways due to lack of fencing and poor use of fertilisers are major contributors to water pollution in New Zealand.{{cite web|title=Water Quality in Selected Dairy Farming Catchments|url=http://www.mfe.govt.nz/publications/land/water-quality-selected-dairying-farming-catchments/water-quality-selected-dairying-farming-catchments.pdf|work=Ministry for the Environment|publisher=New Zealand Government|access-date=15 February 2013|year=2009|archive-url=https://web.archive.org/web/20130214075146/http://www.mfe.govt.nz/publications/land/water-quality-selected-dairying-farming-catchments/water-quality-selected-dairying-farming-catchments.pdf|archive-date=14 February 2013|url-status=dead}} Fonterra's environmental policy states that "Fonterra shall demonstrate a global commitment to protecting the environment. Sustainability, good environmental practice and environmental improvement are cornerstones of Fonterra's environmental commitment."{{cite news

|title = Fonterra Environmental Group Policy

|publisher = Fonterra

|date = 19 January 2006

|url = http://www.fonterra.com/wps/wcm/connect/48cfe400453f0777a388ff9a8f155673/Environmental+Group+Policy+19+Jan+06.pdf?MOD=AJPERES

|access-date = 13 March 2008

|archive-url = https://web.archive.org/web/20071017220612/http://www.fonterra.com/wps/wcm/connect/48cfe400453f0777a388ff9a8f155673/Environmental+Group+Policy+19+Jan+06.pdf?MOD=AJPERES

|archive-date = 17 October 2007

|url-status = dead}} Fonterra claims to have a number of initiatives such as the Dairying and Clean Streams Accord, relating to environmental protection to achieve this policy. In December 2011, the Green Party questioned Fonterra's credibility and the effectiveness of the self-auditing approach given the wide discrepancy between Fonterra's claims and an independent audit of Dairying and Clean Streams Accord.{{cite press release

|title=Fonterra must explain self-reporting inaccuracy

|url=http://www.scoop.co.nz/stories/PA1112/S00093/fonterra-must-explain-self-reporting-inaccuracy.htm

|publisher=Green Party

|access-date=15 February 2013

|date=13 December 2011}}

In 2003, Fonterra became a signatory to the Dairying and Clean Streams Accord, which sets a timeframe for the improvement of water quality on farms. Progress on the Accord goals is reported by the signatories in March of each year on the basis of data collected by Fonterra. The integrity of this data was later questioned when a 2012 independent report commissioned by MAF indicated that while Fonterra's survey of farmers suggests that nationally 84% of properties have stock excluded from waterways, an independent audit by MAF revealed a position that only 42% of farms nationally had stock exclusion.{{cite web|title=Audit Raises Concerns Over 'Clean Streams' Credibility|url=http://www.fishandgame.org.nz/newsitem/audit-raises-concerns-over-clean-streams-credibility|work=Fish & Game New Zealand|access-date=15 February 2013|date=13 December 2011}} The difference in Fonterra's results against those in an independent audit suggest further work is required by Fonterra to protect streams and that evaluating success in this area may be better carried out by an independent third party auditor.

In July 2007, the Green Party called on Fonterra to use financial penalties on its suppliers who were "dirty dairying", and to particularly penalise the 'recidivist polluters' the Crafar Farms.{{cite press release |url=http://www.scoop.co.nz/stories/PA0907/S00251.htm |title=Fonterra must act on dirty dairying to protect NZ |publisher=Green Party |date=22 July 2009 |access-date= 31 May 2010 }} In 2010, Fonterra launched its every farm every year initiative. Fonterra plans to check every farm's effluent management infrastructure every year in a move to address non-compliance with regional council dairy effluent rules. The 2012 independent audit spurred further progress in this area with Fonterra announcing that suppliers will be required to complete fencing of Accord waterways by June 2013.{{cite web|title=Improving fresh water quality is the common goal|url=http://www.lgnz.co.nz/news/media_releases/pr1323740598.pdf|work=Local Government New Zealand|access-date=15 February 2013|date=13 December 2011|archive-url=https://web.archive.org/web/20130209094620/http://lgnz.co.nz/news/media_releases/pr1323740598.pdf|archive-date=9 February 2013|url-status=dead}} Whether this will occur is yet to be seen.

In February 2008, the inaugural Fonterra Environmentalist of the Year was announced at the Beehive.{{cite news

| title = Fonterra backs green award

| newspaper = Rural News

| date = 11 March 2008

| url = http://www.ruralnews.co.nz/Default.asp?task=article&subtask=show&item=15024&pageno=1

| access-date = 13 March 2008 }} The Award continues a partnership between Keep New Zealand Beautiful and Fonterra. Fonterra is also a Corporate Sponsor of the Society and each year teams of staff from the company's manufacturing sites participate in the Keep New Zealand Beautiful Clean Up Week campaign, clearing rubbish from around roadsides, sports fields, parks and beaches. These activities have been criticised as token however as they have limited impacts on preventing stock from entering waterways and in assisting farmer to implement more effective fertiliser regimes that could cut farmers costs and improve water quality.{{cite press release

|url = http://www.fonterra.com/wps/wcm/connect/fonterracom/fonterra.com/our+business/news/media+releases/fonterra+to+check+effluent+systems+on+every+farm,+every+year

|title = Fonterra to check effluent systems on every farm, every year

|date = 18 March 2010

|access-date = 8 March 2011

|publisher = Fonterra

|archive-url = https://web.archive.org/web/20101215115548/http://fonterra.com/wps/wcm/connect/fonterracom/fonterra.com/our+business/news/media+releases/fonterra+to+check+effluent+systems+on+every+farm%2C+every+year

|archive-date = 15 December 2010

|url-status = dead}}

Fonterra is New Zealand's largest producer of biofuel, processing a waste stream from casein manufacture into bio-ethanol. The company produces around 20 million litres of premium ethanol annually.{{cite web | url = http://www.bioenergy.org.nz/documents/publications/Liquid%20Biofuels/KeyPlayers%20in%20NZ%20LiqBio/Anchor%20Ethanol.pdf | title = Anchor Ethanol | work = Bioenergy Association of New Zealand | access-date = 8 March 2011 | archive-url = https://web.archive.org/web/20110724200005/http://www.bioenergy.org.nz/documents/publications/Liquid%20Biofuels/KeyPlayers%20in%20NZ%20LiqBio/Anchor%20Ethanol.pdf | archive-date = 24 July 2011 | url-status = dead}} Since 2004, Fonterra has produced ethanol from whey, a by-product of casein, in the Edgecumbe, Tirau and Reporoa plants.{{cite press release

|url=http://www.scoop.co.nz/stories/BU0409/S00032.htm

|title=Fonterra Explores Alternative Fuel

|publisher = Fonterra Co-operative Group Ltd

|date = 3 September 2004 |access-date =16 January 2011 }} In 2008, Fonterra began supplying Gull Petroleum with ethanol from its Edgecumbe plant.{{cite press release

|url = http://www.biotechlearn.org.nz/news_and_events/news_archive/2008_archive/dairy_based_biofuel_launched

|title = Dairy based biofuel launched

|date = August 2008

|publisher = Gull Petroleum

|quote = Fonterra has been contracted to supply the fuel company Gull New Zealand with ethanol which will be added to its premium petrol. Fonterra can produce 30,000 litres of ethanol a day at its Edgecumbe plant, and over five million litres in a dairy season

|access-date = 16 January 2011

|archive-url = https://web.archive.org/web/20110724200213/http://www.biotechlearn.org.nz/news_and_events/news_archive/2008_archive/dairy_based_biofuel_launched

|archive-date = 24 July 2011

|url-status = dead}} The fuel has significant environmental benefits as it is renewable and biodegradable.

In July 2016, Fonterra announced that their tanker fleet was switching to ZBioD (Z Energy's biodiesel fuel) as a foundation customer. Chief Operating Officer Global Operations, Robert Spurway said "the move to biodiesel has the potential to reduce emissions for the tankers using it up to four per cent each year, and the partnership is an important milestone for Fonterra."{{cite web|url=http://www.fonterra.com/wps/wcm/connect/Fonterra_NewZealand_en/Fonterra/Hub%20Sites/News%20and%20Media/Media%20Releases/FONTERRA%20LAUNCHES%20THE%20SWITCH%20TO%20Z%20BIODIESEL/FONTERRA%20LAUNCHES%20THE%20SWITCH%20TO%20Z%20BIODIESEL?pageID=Z6QReDeK9O86PGC13D0JM47H9CCJMG6M9OGJM8C3BEAJMCCHHD4JRS6HPD46QS6L1|title=Fonterra Launches The Switch to Z Biodiesel|date=1 July 2016|website=Fonterra Media Releases and News|access-date=6 September 2016|archive-url=https://web.archive.org/web/20160914131439/http://www.fonterra.com/wps/wcm/connect/Fonterra_NewZealand_en/Fonterra/Hub%20Sites/News%20and%20Media/Media%20Releases/FONTERRA%20LAUNCHES%20THE%20SWITCH%20TO%20Z%20BIODIESEL/FONTERRA%20LAUNCHES%20THE%20SWITCH%20TO%20Z%20BIODIESEL?pageID=Z6QReDeK9O86PGC13D0JM47H9CCJMG6M9OGJM8C3BEAJMCCHHD4JRS6HPD46QS6L1|archive-date=14 September 2016|url-status=dead}}

In 2006, Forest and Bird asked Fonterra to 'clean up its act', instead of obtaining consent to continue to discharge 8,500 cubic metres per day of wastewater into the Manawatū River.{{cite press release

| title = Forest & Bird calls on Fonterra to clean up its act on the Manawatu River

| publisher = Royal Forest and Bird Protection Society of New Zealand

| date = 9 August 2006 | url = http://scoop.co.nz/stories/PO0608/S00087.htm

| access-date = 13 March 2008 }}

Fonterra responded to Forest and Bird's request, agreeing to treat wastewater it discharges into the Manawatū River, greatly reducing its impact on the river. Treatment will be phased in so that by 2015 the discharge will be treated to a level where the water will be fit to swim in year-round.{{cite web | url = http://www.voxy.co.nz/business/gull-bioethanol-passes-5-million-litre-mark/5/45689 | title = Gull Buys More Than 5m Litres of Bioethanol | work = Voxy | date = 21 April 2010 | access-date = 8 March 2011 | archive-date = 24 July 2011 | archive-url = https://web.archive.org/web/20110724195027/http://www.voxy.co.nz/business/gull-bioethanol-passes-5-million-litre-mark/5/45689 | url-status = dead }}

In 2010, Fonterra signed a voluntary agreement with local councils and freezing works to clean up the river.{{cite news

| title = Pact signed to clean up dirty Manawatu

| url = http://tvnz.co.nz/national-news/pact-signed-clean-up-dirty-manawatu-3689871

| work = TVNZ

| access-date = 8 March 2011}} Fonterra has since encouraged its farmers to clean up their waste and plant trees alongside waterways.{{cite web | url = http://www.fonterra.com/wps/wcm/connect/fonterracom/fonterra.com/our+business/sustainability/water/water+care+on-farm | title = Water care on-farm | access-date = 8 March 2011 | archive-url = https://web.archive.org/web/20101123203653/http://fonterra.com/wps/wcm/connect/fonterracom/fonterra.com/our+business/sustainability/water/water+care+on-farm | archive-date = 23 November 2010 | url-status = dead}}

In August 2009, Greenpeace claimed that Fonterra was implicated in the destruction of Indonesian and Malaysian rainforests, causing deaths of orangutans and increased global greenhouse gas emissions. In response, Federated Farmers said the use of palm kernel does not cause the destruction of tropical forests as it is a waste by-product with almost no commercial value. A spokesperson John Hartnell stated that "Not one millimetre of forest is being cleared just to feed dairy cows".{{cite web |url=http://www.ap-foodtechnology.com/Industry-drivers/Greenpeace-accuses-Fonterra-of-contributing-to-deforestation |title=Greenpeace accuses Fonterra of contributing to deforestation |author= Guy Montague-Jones |publisher=AP Food Technology |date=25 August 2009 |access-date=21 September 2009}}

Fonterra says it shares community concern about tropical deforestation, "which in some cases has been driven by the establishment of palm oil plantations". Fonterra says it has been proactive in ensuring a sustainable supply of palm kernel "and ensuring we do not support deforestation, directly or indirectly."{{cite news

| title = Palm kernel

| date = 2 July 2011 | url = http://www.stuff.co.nz/taranaki-daily-news/4624013/Palm-kernel-essential-feed

| work =Taranaki Daily News | access-date = 10 March 2011}}

Fonterra is a member of the Roundtable for Sustainable Palm Oil to ensure it was informed or sustainability issues in South-East Asia and "to actively contribute to more robust sustainability certification systems."

Fonterra was also the subject of Greenpeace Aotearoa New Zealand protests off the Port of Tauranga on 16 September 2009 and Port Taranaki on 5 February 2011, where Greenpeace activists invaded ships carrying palm kernel animal feed, destined for dairy farms.

Palm kernel imports went from 0.4 tonnes in 1999 to 455,000 tonnes in 2007 and then to 1.1 million tonnes in 2008,{{cite web

|url=http://tvnz.co.nz/national-news/activists-chain-themselves-ship-2993194

|title=Activists chain themselves to ship

|work=TV One News

|date=16 September 2009 |publisher=TVNZ Ltd website

|access-date=21 September 2009 |archive-url=https://web.archive.org/web/20100523141927/http://tvnz.co.nz/national-news/activists-chain-themselves-ship-2993194

|archive-date=23 May 2010

|url-status=dead

}} one quarter of the world's palm-based animal feed.{{cite web

|url = http://topnews.net.nz/content/2478-fonterra-facing-critic-greenpeace-over-palm-oil-feed

|title = Fonterra facing critic from Greenpeace over palm oil feed

|author = Tangaroa Snell

|date = 23 August 2009

|publisher = Top News website

|access-date = 21 September 2009

|archive-url = https://web.archive.org/web/20100516064659/http://topnews.net.nz/content/2478-fonterra-facing-critic-greenpeace-over-palm-oil-feed

|archive-date = 16 May 2010

|url-status = dead}} Greenpeace says that deforestation for the production of palm products is a significant cause of climate change, and loss of bio-diversity.{{cite press release |url=http://www.greenpeace.org/new-zealand/press/releases/fonterra-exposed |archive-url=https://archive.today/20120802100640/http://www.greenpeace.org/new-zealand/press/releases/fonterra-exposed |url-status=dead |archive-date=2 August 2012 |title=Fonterra's role in rainforest destruction exposed |publisher=Greenpeace Aotearoa New Zealand |date=22 August 2009 |access-date=30 September 2009 }}

Greenpeace campaign director Chris Harris said only 4 per cent of palm oil came from sustainable sites.{{cite news |url=http://www.stuff.co.nz/environment/2872390/Greenpeace-protest-won-t-shift-Fonterra-or-PM

|title=Greenpeace protest won't shift Fonterra or PM

|author= NZPA

|date=17 September 2009 |newspaper=The Dominion-Post

|access-date= 21 September 2009}} Greenpeace stated that forests were being cleared for the planting of the trees that produce palm oil.

In August 2016, Fonterra announced a new palm products sourcing standard that was developed in consultation with key supply partners, and following discussions with Greenpeace that began in December 2015. "The new standard requires Fonterra to purchase on segregated supply palm oil by 2018, and to work with suppliers of palm products to ensure that plans are in place for full traceability to plantation by 2018", said Fonterra's director of social responsibility, Carolyn Mortland.{{cite web|url=http://www.fonterra.com/wps/wcm/connect/Fonterra_NewZealand_en/Fonterra/Hub%20Sites/News%20and%20Media/Media%20Releases/FONTERRA%20ANNOUNCES%20NEW%20PALM%20PRODUCTS%20SOURCING%20STANDARD/FONTERRA%20ANNOUNCES%20NEW%20PALM%20PRODUCTS%20SOURCING%20STANDARD?pageID=Z6QReDeOPO46RKCI9D0JMK6M1PAJMG62ROEJM8CK1C4JMGCM1CC6HDCOHO6JR06K1|title=Fonterra Announces New Palm Products Sourcing Standard|date=12 August 2016|website=Fonterra News and Media Releases|access-date=6 September 2016|archive-url=https://web.archive.org/web/20160914125501/http://www.fonterra.com/wps/wcm/connect/Fonterra_NewZealand_en/Fonterra/Hub%20Sites/News%20and%20Media/Media%20Releases/FONTERRA%20ANNOUNCES%20NEW%20PALM%20PRODUCTS%20SOURCING%20STANDARD/FONTERRA%20ANNOUNCES%20NEW%20PALM%20PRODUCTS%20SOURCING%20STANDARD?pageID=Z6QReDeOPO46RKCI9D0JMK6M1PAJMG62ROEJM8CK1C4JMGCM1CC6HDCOHO6JR06K1|archive-date=14 September 2016|url-status=dead}}

On 17 November 2009, Greenpeace members protested at Solid Energy's New Vale opencast lignite mine near Gore, New Zealand, by unfurling a 40 by 40-metre banner reading 'Fonterra Climate Crime'. Greenpeace was protesting about Fonterra's use of brown coal (lignite) at the nearby Edendale Fonterra plant. Greenpeace alleged that the Edendale plant will burn 179,000 tonnes of lignite, which will release over 250,000 tonnes of carbon emissions.{{cite web

|url=http://sl.farmonline.com.au/news/state/dairy/general/climate-activists-shut-down-coal-mine-in-protest-against-fonterra/1685027.aspx?storypage=0

|title=Climate activists shut down coal mine in protest against Fonterra

|date=23 November 2009

|access-date=24 November 2009

|publisher=Fairfax Digital: Farm Online, Stock & Land

|archive-date=30 November 2009

|archive-url=https://web.archive.org/web/20091130070930/http://sl.farmonline.com.au/news/state/dairy/general/climate-activists-shut-down-coal-mine-in-protest-against-fonterra/1685027.aspx?storypage=0

|url-status=dead

}}{{cite web

|url=http://www.odt.co.nz/the-regions/southland/82319/greenpeace-protest-gore039s-new-vale-mine

|title=Greenpeace protest at Gore's New Vale mine

|date=17 November 2009

|access-date=24 November 2009

|publisher=Otago Daily Times

}}

In response to the protest, Fonterra said, "We use 13.9 percent less energy to produce each tonne of export product than we did in 2003. That's equivalent to the energy required to power 100,000 homes and, relative to 2003, represents a 320,000 tonne reduction in CO₂e{{cite news | title = Carbon dioxide equivalent – the internationally recognised measure for greenhouse gas emissions allows gases such as Methane (CH4), Nitrous Oxide (N20) and Carbon Dioxide (CO2) to be compared on a like for like basis. | work = Note }} greenhouse gas emissions in 2010.

We use the best mix of energy sources available to us at every one of our sites. We're continually looking for ways to be more energy efficient."{{cite news | title = Protest blocks coal depot for Fonterra dairy factory | url = http://www.nbr.co.nz/article/protest-blocks-coal-depot-fonterra-dairy-factory-123200 | work = NBR | access-date = 9 March 2011 | archive-date = 24 July 2011 | archive-url = https://web.archive.org/web/20110724194017/http://www.nbr.co.nz/article/protest-blocks-coal-depot-fonterra-dairy-factory-123200 | url-status = dead }}

In late 2018, Fonterra's Brightwater milk-processing plant, in association with [https://www.azwood.co.nz/ Azwood Energy], began burning wood biomass, alongside coal, to reduce carbon emissions.{{Cite web|url=https://www.stuff.co.nz/business/industries/108693255/fonterras-brightwater-site-burns-wood-biomass-to-reduce-emissions|title=Fonterra's Brightwater site burns wood biomass to reduce emissions|website=Stuff |date=20 November 2018|language=en|access-date=15 September 2019}} Fonterra's Stirling milk-processing plant will run solely on electricity.{{Cite web|url=https://www.stuff.co.nz/southland-times/news/106159364/fonterra-stirling-plant-first-in-new-zealand-to-convert-from-coal-to-electricity|title=Fonterra Stirling plant first in New Zealand to convert from coal to electricity|website=Stuff |date=10 August 2018|language=en|access-date=15 September 2019}}

In February 2019, 350 Aotearoa, the New Zealand arm of the international climate movement 350.org, produced a video entitled, "Coalterra, Dairy for Death"{{Citation|title=Coalterra -Dairy For Death| date=13 February 2019 |url=https://www.youtube.com/watch?v=Fr3zn5KJPhE|language=en|access-date=15 September 2019}} critical of Fonterra's coal use – estimated at half a million tonnes per year.

In July 2019, Fonterra announced it would install no new coal boilers.{{Cite web|url=https://www.stuff.co.nz/business/farming/114328226/fonterra-pledges-to-stop-building-new-coal-boilers-immediately|title=Fonterra pledges to stop building new coal boilers immediately|website=Stuff |date=18 July 2019|language=en|access-date=15 September 2019}} Coal Action Network Aotearoa welcomed the decision, but warned against utilising other fossil fuels, such as gas, in substitution, suggesting wood biomass, as a better alternative.{{Cite web|url=http://www.scoop.co.nz/stories/PO1907/S00211/coal-group-welcomes-fonterras-coal-exit.htm|title=Coal group welcomes Fonterra's coal exit |date=July 18, 2019|website=www.scoop.co.nz|access-date=15 September 2019}}

In September 2010, Bay of Plenty Regional Council made a statement that it had prosecuted Fonterra for allowing nitric acid and a caustic cleaning agent from its Edgecumbe milk processing plant to spill into a storm water drain and into a water course. Fonterra was fined $24,000.{{Cite press release |url=http://www.scoop.co.nz/stories/AK1009/S00709/three-dairy-farms-and-fonterra-fined-for-polluting.htm |title=Three dairy farms and Fonterra fined for polluting |publisher= Environment Bay of Plenty |date=27 September 2010 |access-date=27 September 2010 |quote=Bay of Plenty Regional Council also successfully prosecuted Fonterra for a chemical spill, which ended up in a storm water drain, at its Edgecumbe milk processing factory ... Fonterra was convicted for allowing contaminants (nitric acid and caustic cleaning agent) to discharge to a storm water drain and into a water course and was fined $24,000 }} The Dominion Post{{cite news |url=http://www.stuff.co.nz/dominion-post/business/4172201/Fonterra-fined-24-000 |title=Fonterra fined $24,000

|newspaper=The Dominion Post

|publisher=Fairfax NZ Ltd

|date=27 September 2010 |access-date=27 September 2010 }} and The New Zealand Herald reported the prosecution.{{cite news |url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10676480 |title=Fonterra fined for acid in waterway |newspaper=The New Zealand Herald|author=NZPA |date=27 September 2010 |access-date=27 September 2010 }}

Fonterra is currently educating its sites on the best way to reduce pollution.{{cite web

|url = http://www.fonterra.com/wps/wcm/connect/4970ff0043e5bedf9f1edf809c791ff8/Fonterra+and+the+environment.pdf?MOD=AJPERES

|title = Fonterra and the Environment

|access-date = 9 March 2011

|archive-url = https://web.archive.org/web/20101215113624/http://fonterra.com/wps/wcm/connect/4970ff0043e5bedf9f1edf809c791ff8/Fonterra+and+the+environment.pdf?MOD=AJPERES

|archive-date = 15 December 2010

|url-status = dead}}

In 2007, Fonterra won two awards in the Energy Efficiency and Conservation Authority, Energywise Awards:

1. Transpower Project Innovation Award; Winner: Fonterra Co-operative Group – Whareroa heat recovery loop
2. Contact Energy Management Award; Winner: Fonterra Co-operative Group – Energy efficient project management team{{cite web | url = http://www.eeca.govt.nz/node/1244 | title = EECA Awards 2007 | work = Energy Efficiency and Conservation Authority | access-date = 8 March 2011 | url-status = dead | archive-url = https://web.archive.org/web/20110510005629/http://www.eeca.govt.nz/node/1244 | archive-date = 10 May 2011}} Fonterra was also commended for its road to rail project by the EECA.

In 2008, Fonterra Edendale won the New Zealand Clean Air Society's annual Clean Air award, which recognises exceptional contributions by individuals and businesses to researching and improving the environment.{{cite web |date=25 July 2008 |title=Fonterra factory wins environmental award |url=http://www.odt.co.nz/news/farming/14747/fonterra-factory-wins-environmental-award |access-date=8 March 2011 |website=Otago Daily Times }}

In 2009, Fonterra won the supreme prize at the Packaging Council of New Zealand's Environmental Packaging Awards for its introduction and promotion of a more environmentally sustainable packaging.{{cite web

|url = http://www.packaging.org.nz/index.php/sustainability/awards/awards-archive/

|title = Previous Environmental Packaging Awards and Supreme Award Winners

|work = The Packaging Council of New Zealand Inc.

|access-date = 8 March 2011

|archive-url = https://web.archive.org/web/20130208073209/http://packaging.org.nz/index.php/sustainability/awards/awards-archive/

|archive-date = 8 February 2013

|url-status = dead}}

In 2012 Fonterra won the Export Category at the 2012 TVNZ New Zealand Marketing Awards for their Anchor Strong marketing to the Pacific, with designs by Dow Design.{{cite web | url = http://www.everythingmarketing.co.nz/showcase/2012/entrant/61#&panel1-1 | title = Fonterra Brands New Zealand – Export – TVNZ – TVNZ NZ Marketing Awards | access-date = 14 April 2014 | archive-url = https://web.archive.org/web/20140415114003/http://www.everythingmarketing.co.nz/showcase/2012/entrant/61#&panel1-1 | archive-date = 15 April 2014 | url-status = dead}}

In 2016, Energy Efficiency and Conservation Authority (EECA) recognised Fonterra's Edendale Site as the most energy efficient dairy manufacturing site in New Zealand.{{cite web |title=Farmers Weekly |date=22 November 2016 |url=https://www.farmersweekly.co.nz/edendale-is-most-energy-efficient-factory/ |access-date=28 October 2022}}

In 2019, Fonterra business, NZAgbiz were awarded finalists in the 'Going Circular' category.{{cite web |title=NZAgbiz recognised at prestigious Sustainability Awards |url=https://www.nzagbiz.co.nz/nz/en/news-and-events/articles/nzagbiz-recognised-at-prestigious-sustainability-awards.html |access-date=28 October 2022}}

In 2021, Fonterra received the Low Carbon Future Award for the conversion to renewable wood pallets at the Te Awamutu site. The Low Carbon Future Award recognises emission reduction initiative undertaken by the New Zealand energy sector.{{cite web |title=Fonterra and Nature's Flame – Wood Pellets |url=https://www.energyawards.co.nz/content/fonterra-and-natures-flame-%E2%80%93-wood-pellets |website=New Zealand Energy Excellence Awards |access-date=28 October 2022}}

In 2022, Fonerra's NZMP Organic Butter – Carbonzero Certified won the "Most Innovative Dairy Product Award" at the Gulfood Innovation Awards.{{cite web |title=Winners Announced |url=https://www.gulfood.com/innovation-award-2022-winners-announced |website=Gulfood |access-date=28 October 2022 |archive-date=28 October 2022 |archive-url=https://web.archive.org/web/20221028032326/https://www.gulfood.com/innovation-award-2022-winners-announced |url-status=dead }}

In 2022, Fonterra's Maungaturoto site was recognised at the Water New Zealand Excellence Award for the reduction of water usage by 25%.{{cite web |url=https://view.publitas.com/fonterra/2022-annual-review/page/4|title=Fonterra Annual Review for the year ended 31 July 2022 |access-date=22 September 2022}}

{{Main|2008 Chinese milk scandal}}

In September 2008, one of the biggest dairy companies in China, the Shijiazhuang Sanlu Group, 43% owned by Fonterra,{{cite web

|url=http://www.scoop.co.nz/stories/BU0512/S00032.htm

|title=Fonterra And San Lu Reach Joint Venture Agreement

|date=2 December 2005

|access-date=15 September 2008

|publisher=Scoop

}} recalled more than 10,000 tonnes of infant formula after a food safety scandal involving the criminal contamination of its raw milk supply with melamine. Court papers showed the company first began receiving complaints of children becoming sick after drinking its milk in December 2007, but only stopped production when Fonterra blew the whistle in September 2008.{{cite news|url= http://news.bbc.co.uk/2/hi/7845545.stm|title= Little comfort in milk scandal verdicts|date=22 January 2009|work=BBC News |first=Quentin|last=Sommerville}} After the initial focus on Sanlu, China's quality watchdog said that inspectors had also found the chemical melamine in baby formula produced by 22 companies nationwide.{{cite news | title=China seizes 22 companies with contaminated baby milk powder | date=17 September 2008 | url =http://news.xinhuanet.com/english/2008-09/17/content_10046949.htm | archive-url =https://web.archive.org/web/20080918091023/http://news.xinhuanet.com/english/2008-09/17/content_10046949.htm | url-status =dead | archive-date =18 September 2008 | work =Xinhua News Agency | access-date = 13 June 2009 }} An estimated 300,000 Chinese babies were affected, and six died after developing kidney problems as a result of drinking formula containing melamine.{{cite news | first=Sudesh | last=Kissun |title=China seeks food safety | url=http://www.ruralnews.co.nz/Default.asp?task=article&subtask=show&item=17416 | date=21 April 2009 | work=Rural News | access-date = 13 June 2009 }}

Fonterra first became aware of problems on 2 August 2008, when the Sanlu board, which had three Fonterra directors, was advised there was a problem with the contamination of infant formula. A trade recall began shortly after Fonterra was first notified.{{cite news|url=http://www.stuff.co.nz/business/628828 |title='Sabotage' behind poison milk – Fonterra |newspaper=Stuff |publisher=Fairfax Media Ltd |date=15 September 2008 |access-date=6 February 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110613103350/http://www.stuff.co.nz/business/628828 |archive-date=13 June 2011}} Prime Minister Helen Clark later said Fonterra had been lobbying for a public recall since 2 August, but that "local authorities in China would not do it. At a local level ... I think the first inclination was to try and put a towel over it and deal with it without an official recall." Ms Clark said she first heard of the contamination on 5 September and three days later ordered that Beijing be told directly, bypassing local and provincial Chinese authorities.{{cite news | first=Mary-Ann | last=Toy | title=Sabotage claim in milk powder scandal | date=16 September 2008 | url =http://www.smh.com.au/news/world/sabotage-claim-in-milk-powder-scandal/2008/09/15/1221330749043.html | work =The Sydney Morning Herald | access-date = 4 February 2010 }}

On 21 September 2008, an editorial in The New Zealand Herald questioned the "moral courage and leadership" of Fonterra chief executive Andrew Ferrier. Citing Fonterra's number one corporate value, the journal questioned why it took nearly a month after it had become aware of the contamination before it notified the government. It said Fonterra's press release had been "minutely scrutinised by lawyers and spin doctors, and that the company was far less interested in 'moral courage and leadership' than it was in preserving its own position."{{cite news|url=http://www.nzherald.co.nz/food/news/article.cfm?c_id=206&objectid=10533356|title=Editorial: Fonterra poison milk scandal a disaster waiting to happen|date=16 September 2008|newspaper=The New Zealand Herald |access-date= 27 September 2008}} The next day, Helen Clark, agreed that the company had been too slow to speak out.{{cite news |url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10533487&pnum=0|title=Fonterra slow to speak on milk scandal – PM|date=21 September 2008|work=New Zealand Herald

|access-date=24 September 2008}} Ferrier was also condemned by Business Day for his "silent hand-wringing", when he should have immediately blown the whistle.{{cite web |url=http://www.businessday.co.nz/industries/agribusiness/4710249 |title=Fonterra has failed us all |author= John Minto |date=30 September 2008 |publisher=Business Day |access-date=27 September 2008 |archive-url=https://web.archive.org/web/20090111054842/http://www.businessday.co.nz/industries/agribusiness/4710249 |archive-date=11 January 2009}} [http://johnminto.wordpress.com/2008/09/30/fonterra-has-failed-us-all/ Alt URL] Ferrier denied Fonterra knew that Sanlu lied for eight months to hide complaints about its baby formula causing illness.{{cite news|url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10533828&pnum=0 |title=Fonterra had not heard of milk revelations – Ferrier |date=24 September 2008 |work=The New Zealand Herald |access-date=27 September 2008 |first1=Owen |last1=Hembry |first2=Eloise |last2=Gibson}}{{cite web |url=http://www.stuff.co.nz/business/industries/642763|title=Fonterra takes 69pc SanLu writedown |work=Stuff: Business Day |date=31 January 2009 |access-date= 9 May 2010}} However, Access Asia, a Shanghai-based consumer consultancy, said Fonterra was a classic example of western executives in China "believ[ing] advice in business books that they must avoid making their local partners 'lose face' at all costs." It suggested Fonterra paid a heavy price in write-offs, a wrecked business and public condemnation.{{cite news|url=https://www.telegraph.co.uk/news/worldnews/asia/china/3073998/China-milk-scandal-threatens-giant-dairy-firm.html|title=China milk scandal threatens giant dairy firm|date=24 September 2008 |author=Richard Spencer & Peter Foster|newspaper=The Telegraph | location=London}}

In a video press conference with reporters in September 2008, Ferrier said Sanlu's milk supply may have been sabotaged. He added the company did not come forward with the information earlier because it was waiting for the recall process to move through the Chinese system.{{cite magazine | first=Austin | last=Ramzy |author2=Lin Yang | title=Tainted-baby-milk scandal in China | date=16 September 2008 | url =http://www.time.com/time/world/article/0,8599,1841535,00.html | archive-url =https://web.archive.org/web/20080918215806/http://www.time.com/time/world/article/0,8599,1841535,00.html | url-status =dead | archive-date =18 September 2008 | magazine =Time | access-date = 18 February 2010 }}

David Oliver, a New Zealander who works as a corporate advisor to companies in the Chinese agricultural industry, feels that while Fonterra had board representation in Sanlu, it is unlikely they had much influence within the company as they had only a minority stake.{{cite news | first=Sandra | last=Taylor | title=Fonterra not the {{sic|nolink=y|villian}} in Chinese milk scandal | date=1 October 2008 | publisher=NZX Rural | url=http://www.country-wide.co.nz/article/9954.html | work=Country-Wide Northern | access-date=18 February 2010 | archive-url=https://web.archive.org/web/20100521114631/http://www.country-wide.co.nz/article/9954.html | archive-date=21 May 2010 | url-status=dead}}

Ferrier said, "I can look myself in the mirror and say Fonterra acted absolutely responsibly in this one. If you don't follow the rules of an individual market place then I think you are getting irresponsible." Ferrier later said the feedback he received from both government and business contacts in China was that Fonterra was seen to have acted with integrity.{{cite news | title=Fonterra makes $8m donation

| date=10 October 2008 | publisher=Fairfax

| url =http://www.stuff.co.nz/business/667941

| work =The Dominion Post

| access-date = 18 February 2010 }}

In September 2008, Henry van der Heyden, chairman of the board, said "As a direct consequence of the criminal contamination of milk in China, Fonterra has recognised an impairment charge of $139 million against the carrying value of its investment in SanLu." "We've learnt an incredibly painful lesson through this and we will be much, much more suspicious worldwide on ensuring the safety and integrity of our supply chain everywhere in the world", said Ferrier. But he also pointed out that the company can never be 100% certain against a criminal contamination of the supply chain, which is what happened in this incident.

On 17 September 2008, Fran O'Sullivan{{cite news | first=Fran | last=O'Sullivan |url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10532551&pnum=0 |title=Soul-searching for Fonterra |archive-url=https://web.archive.org/web/20121023015455/https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10532551&pnum=0 |archive-date=23 October 2012 |date=17 September 2008|work=The New Zealand Herald |url-status=dead |access-date=5 September 2019}} noted that Fonterra had already set "up a 3000-head dairy farm in China itself to provide quality product and demonstrate best practice."

On 10 October 2008, Ferrier announced in Beijing that Fonterra will "donate NZ$8.4 million to the Soong Ching Ling Foundation over five years for a co-operative charity project to provide medical care and advice to pregnant women and the mothers of infants in rural communities." Andrew Ferrier said Fonterra was "shocked by the degree of tragedy" and the donated fund is set up to "help over the long-term in infants and maternal mother health." Andrew Ferrier said Chinese consumers have lost confidence in Sanlu, not Fonterra, and Fonterra is working towards rebuilding a safe supply chain of dairy products.{{cite news

|first=Owen|last=Hembry

|url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10536936

|title=Fonterra puts up $8.4m to provide care in China

|date=11 October 2008

|work=The New Zealand Herald

|access-date= 9 November 2008}}

In April 2009, during a state visit by New Zealand Prime Minister John Key to Beijing, Chinese Premier Wen Jiabao asked Prime Minister Key for help in developing food safety standards for China. Mr Key said the Chinese Premier considers 2008's contaminated milk scandal a one-off incident that can be put behind both countries. A report by Fran O'Sullivan in the New Zealand Herald{{cite news | first=Fran | last=O'Sullivan | title=So long, Sanlu | date=2 May 2009 | publisher=APN | url= http://www.nzherald.co.nz/the-fonterra-float/news/article.cfm?c_id=1501678&objectid=10569769&pnum=0 | work =The New Zealand Herald | access-date = 18 February 2010 }} said that Fonterra had learnt some heavy lessons from Sanlu and the company would have to have confidence in the safety of its milk supply chain in China before reinvesting significantly in the local production of dairy products.

On 24 November 2009 two Sanlu former workers Zhang Yujun and Geng Jinping were executed.{{Cite news |last=Branigan |first=Tania |date=2009-11-24 |title=China executes two for tainted milk scandal |url=https://www.theguardian.com/world/2009/nov/24/china-executes-milk-scandal-pair |access-date=2024-03-04 |work=The Guardian |language=en-GB |issn=0261-3077}}

In September 2012, traces of 2-Cyanoguanidine, a fertiliser commonly referred to as DCD that is used to slow down nitrate leaching, was found in some milk samples.{{cite news| url= http://www.3news.co.nz/Government-downplays-DCD-risk/tabid/418/articleID/284532/Default.aspx| work= 3 News NZ| title= Government downplays DCD risk| date= 27 January 2013| access-date= 3 August 2013| archive-url= https://web.archive.org/web/20130415140116/http://www.3news.co.nz/Government-downplays-DCD-risk/tabid/418/articleID/284532/Default.aspx| archive-date= 15 April 2013| url-status= dead}} Fonterra, Federated Farmers and the Government moved quickly to reassure the public and overseas buyers there was no risk to health.{{cite news | last = Astley | first = Mark | url = http://www.3news.co.nz/Government-defends-Fonterras-safety/tabid/421/articleID/284682/Default.aspx | work = 3 News NZ | title = Government defends Fonterra's safety | date = 28 January 2013 | access-date = 3 August 2013 | archive-url = https://web.archive.org/web/20131015083709/http://www.3news.co.nz/Government-defends-Fonterras-safety/tabid/421/articleID/284682/Default.aspx | archive-date = 15 October 2013 | url-status = dead}} Fonterra has received praise for its handling of the DCD issue.{{cite news| url= http://www.dairyreporter.com/Regulation-Safety/DCD-concerns-NZ-handling-of-crisis-was-textbook-Rabobank| work= Dairy Reporter| title= DCD concerns: NZ handling of crisis was 'textbook' – Rabobank| date= 21 February 2013| archive-date= 22 May 2013| access-date= 3 August 2013| archive-url= https://web.archive.org/web/20130522073811/http://www.dairyreporter.com/Regulation-Safety/DCD-concerns-NZ-handling-of-crisis-was-textbook-Rabobank/?| url-status= dead}} The levels were very low and attempts were made to prevent the test results from being reported in the media.{{cite news|url=http://www.stuff.co.nz/national/health/8547471/Secrecy-over-milk-DCD-scare-revealed|title=Secrecy Over DCD in Milk Scare Revealed|last=Watkins|first=Tracy|date=14 April 2013|work=Sunday Star-Times|access-date=13 April 2013}}

On 16 August 2013 a Sri Lankan court banned the sale and advertising of all Fonterra products in Sri Lanka.{{cite news| url=https://www.reuters.com/article/us-fonterra-srilanka-idUSBRE97F09020130816 | work=Reuters | title=Sri Lankan court bars Fonterra milk products for two weeks | date=16 August 2013}}{{Cite web |url=http://tvnz.co.nz/national-news/sri-lanka-orders-ban-fonterra-products-5534914 |title=Sri Lanka orders ban of Fonterra products – National News | TVNZ |access-date=16 August 2013 |archive-url=https://web.archive.org/web/20130819010510/http://tvnz.co.nz/national-news/sri-lanka-orders-ban-fonterra-products-5534914 |archive-date=19 August 2013 |url-status=dead}} The health ministry has said tests by Sri Lanka's Industrial Technology Institute found DCD in some Fonterra powdered milks and it had ordered their recall.

{{main|2013 Fonterra recall}}

On 3 August 2013, authorities in New Zealand announced a global recall of up to 1,000 tonnes of dairy products after tests identified a type of bacteria that could cause botulism. Products included were infant formula, sports drinks, protein drinks and other beverages. The countries affected were New Zealand, China, Australia, Thailand, Malaysia, Vietnam, Sri Lanka and Saudi Arabia.{{cite news|title=New Zealand botulism scare triggers mass global recall|url=https://www.foxnews.com/health/new-zealand-botulism-scare-triggers-mass-global-recall/|publisher=Fox News|access-date=3 August 2013|date=3 August 2013}}

Fonterra's head of its milk products business, Gary Romano, resigned over the scandal on 14 August 2013.{{cite news | title=Fonterra's milk products chief resigns after botulism scare | author=Gyles Beckford| work=Reuters| url=https://www.reuters.com/article/us-fonterra-romano-idUSBRE97D04C20130814?feedType=RSS&feedName=topNews&dlvrit=992637| date=14 August 2013}}

In late August 2013 laboratory test results revealed that the bacteria found in the whey protein concentrate manufactured by Fonterra was not the botulism-causing Clostridium botulinum.{{cite news| url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11115784 | work=The New Zealand Herald | title=Fonterra botulism crisis was false alarm – Business – NZ Herald News | date=28 August 2013}}

Fonterra marketed and distributed the Bega Cheese brand, under an agreement established between the two companies in 1999. Fonterra later raised the issue of Bega otherwise using the Bega brand to market peanut butter. Bega themselves have since challenged this, accusing Fonterra of not living up to the agreement by not promoting the brand and therefore devaluing it.{{Cite web |last=Danckert |first=Sarah |date=2020-03-12 |title=Fonterra gets glimpse of documents after Bega boss corrects statement |url=https://www.smh.com.au/business/companies/fonterra-gets-glimpse-of-documents-after-bega-boss-corrects-statement-20200311-p548y5.html |access-date=2023-02-14 |website=The Sydney Morning Herald |language=en}} This case ended on 25 February 2021, when the Victoria Supreme Court dismissed all claims. Bega is allowed to continue to sell market peanut butter, but the court found Fonterra had no obligation to promote the brand as Bega claimed.{{Cite news |date=2021-02-25 |title=Why your peanut butter has gone all the way to the Supreme Court |url=https://www.abc.net.au/news/2021-02-25/bega-cheese-fonterra-supreme-court-peanut-butter-dispute/13190932 |access-date=2024-03-08 |work=ABC News |language=en-AU}}

In September 2024, Greenpeace announced they were suing Fonterra for breaching the Fair Trading Act. Greenpeace claimed that the Fonterra marketing of milk from "100% New Zealand grass-fed" cows was misleading when up to a fifth of an animal's diet might be imported palm kernel. Palm kernel is considered to be linked to deforestation, and New Zealand imports two million tonnes of it annually.{{Cite web |date=2024-09-30 |title=Greenpeace takes Fonterra to task over grass-fed claims |url=https://www.nzherald.co.nz/business/greenpeace-takes-fonterra-to-task-over-grass-fed-claims/X3WR6SLCLFC53IZLECKBGGSLCQ/ |access-date=2024-09-30 |website=The New Zealand Herald |language=en-NZ}}{{Cite web |date=2024-09-30 |title=Greenpeace suing Fonterra for allegedly misleading customers |url=https://www.rnz.co.nz/national/programmes/checkpoint/audio/2018957760/greenpeace-suing-fonterra-for-allegedly-misleading-customers |access-date=2024-09-30 |website=RNZ |language=en-nz}}

• Dairy farming in New Zealand

{{Reflist}}

{{Commons category|Fonterra}}

• [http://www.fonterra.com/ Fonterra]
• [http://www.riverinafresh.com.au Fonterra Riverina Fresh]
• [https://web.archive.org/web/20090403111332/http://www.fonterrafoodservices.com.my/ Fonterra Food Service Malaysia]
• [http://www.rd1.com/ RD1] {{Webarchive|url=https://web.archive.org/web/20140903023340/https://www.rd1.com/ |date=3 September 2014 }}
• [http://www.globaldairytrade.info GlobalDairyTrade]

{{Portal bar|Food|Companies|New Zealand}}

{{Science and Research in New Zealand}}

{{Authority control}}

Category:Agricultural cooperatives

Category:Multinational dairy companies

Category:Dairy cooperatives

Category:Dairy products companies of New Zealand

Category:2008 Chinese milk scandal

Category:Dairy farming in New Zealand

Category:Companies based in Auckland

Category:New Zealand brands

Category:Food and drink companies established in 2001

Category:Companies listed on the New Zealand Exchange

Category:Companies in the S&P/NZX 50 Index

Category:New Zealand companies established in 2001

Category:Science and technology in New Zealand

Category:Yogurt companies