Royal DSM N : Fonterra joins forces with DSM to lower carbon footprint

Auckland, NZ & Kaiseraugst, CH, 08:00 NZST / 20:00 CET

New Zealand dairy co-operative Fonterra and Royal DSM, a global science-based company active in health, nutrition and sustainable living, have signed a collaboration agreement to accelerate the transition to lower methane agriculture.

Fonterra is committed to addressing agricultural greenhouse gas emissions as part of its sustainability drive to ensure a healthier planet. Methane is a major challenge for the agriculture sector, particularly in New Zealand, where it makes up almost half of the nation's greenhouse gas emissions. Finding and applying solutions that would significantly contribute to achieving Paris Agreement commitments and New Zealand Zero-Carbon goals is a key priority for both companies.

DSM has developed a feed additive, called Bovaer®, which effectively and consistently reduces methane emissions from cows by over 30%. The solution has recently been featured by the World Resources Institute as one of the ten global break-through technologies that can help to feed the world sustainably.

Fonterra Group Director Farm Source Richard Allen stressed that finding a solution to the methane challenge requires more than just the hard graft farmers are putting in. 'We need to find a breakthrough in reducing emissions from cows and Bovaer® could provide exactly that. This work with DSM is an exciting opportunity for the Co-op.'

In addition, Fonterra's Chief Technology Officer, Jeremy Hill, said: 'We have a long-standing relationship with DSM globally, both in innovation and operations. Several years ago DSM introduced me to Bovaer® and we wanted to explore and validate how this could contribute to Fonterra's global sustainability aspirations.'

Over the past five years DSM and Fonterra have been working in New Zealand on identifying solutions for a feed additive approach in pasture-based farming systems. By signing this agreement, Fonterra and DSM want to take a next step in their collaboration to accelerate their joint efforts to make Bovaer® available to New Zealand farmers. This will enable New Zealand to continue to take a leadership role in low carbon dairy production.

Mark van Nieuwland, global program head for DSM Nutritional Products said: 'We are proud to be in collaboration with Fonterra. Both companies have worked together for many years, and it's a pleasure to extend this to the field of sustainability and climate change. With Fonterra, we have an important partner to potentially commercialize Bovaer® in New Zealand and globally. We look forward to combining our expertise and passion.'

Jeremy Hill adds: 'Fonterra is working closely together with DSM New Zealand to ensure that any innovation is well tested, and readily accessible through our distribution network for our farmer owners. We also see this as an opportunity to further accelerate our global leadership in low footprint dairy products, and create more value for our New Zealand milk.'

About Bovaer®

Bovaer® is a feed additive for cows (and other ruminants, such as sheep, goats, and deer) researched and developed over 10 years by DSM. Just a quarter teaspoon of Bovaer® per cow per day reduces enteric methane emission by approximately 30%. The feed additive Bovaer® therefore contributes to a significant and immediate reduction of the environmental footprint of meat, milk and dairy products.