Fonterra’s milk meets New Zealand Dairy Grass-Fed Administrative Standard

NEW ZEALAND – Fonterra, a giant dairy company, has announced that its milk meets the requirements of the New Zealand Dairy Grass-Fed Administrative Standard, which will help to strengthen its competitive advantage in key markets across the globe.

The standard requires that dairy animals have a diet comprised of at least 90% (fresh weight) on a 3-year rolling average of qualifying grass-fed feed types and are on pasture or forage crops for at least 8 hours per day, on average, 340 days per year.

Fonterra data shows farmers’ cows are on average 96% grass-fed and spend over 350 days on pasture, which is above the New Zealand Grass Fed Standard’s requirements.

The voluntary scheme, developed in partnership between the Primary Sector and the Ministry for Primary Industries, sets a clear definition for grass-fed products.

Producers who meet the standard can be assessed and display the trusted Grass-Fed certification on their products, enabling them to market their products globally.

Prime Minister Christopher Luxon and Agriculture Minister Todd McClay said,” International consumers are increasingly willing to pay more for high-quality grass-fed food, and New Zealand intends to lead that space, not follow it. This new standard puts a clear, trusted stamp on what our farmers have always done best—producing high-quality, safe pasture-raised meat and dairy.”

Mr. McClay emphasised that the initiative goes beyond just branding, serving as a strategic tool to penetrate premium market segments and maintain a competitive edge. He reiterated the company’s unwavering commitment to enhancing the value of exports while supporting farmers.

Additionally, he highlighted that this development is part of a broader effort to position New Zealand farming as the global standard for high-quality, safe, and sustainable production, ensuring exporters remain well-equipped to secure prime positioning in premium markets.

Earlier this year, the company provided an update on its forecast earnings for FY25, stating that it expects to achieve results in the upper half of its previously announced earnings range of $ 0.40 to $0.60 per share.

The cooperative attributes this to strong sales performance and favorable pasture conditions across New Zealand, which have contributed to an increase in its forecast milk collections for the season.

Fonterra CEO Miles Hurrell reported that the cooperative has maintained its momentum from the first quarter as it prepares to release its interim results on March 20.

He stated that strong demand across its sales channels continues to drive earnings, with the first-half accounts indicating a full-year forecast in the upper range of its guidance.

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