The seaweed trial was a way of tackling the effects of climate change, which was one of the most pressing challenges of our time, Managing Director Co-Operative Affairs Mike Cronin said.
"It's looking like seaweed has some really good potential there," he told The Country Sport Breakfast's Brian Kelly.
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So far lab trials showed seaweed could significantly reduce emissions from cows, which was great news, Cronin said.
"We're happy with how it's going and expanding the trials to see if we can scale it up a bit."
The aim of the trials was to find out whether the seaweed supplement could be used in a way that was safe for cows, safe for consumers, and ensured there was no impact on milk taste or quality, Cronin said.
"As I said we also want to scale it up, so we want to make sure it's affordable at scale as well."
Should the trials prove successful, Fonterra would provide access to the solution for its farmers, he said.
The seaweed trial was all part of the co-op's goal to find more efficient and environmentally friendly methods to produce and distribute its dairy foods right through its supply chain.
A significant amount of the greenhouse gas emissions produced by the agricultural industry come from the methane produced by livestock as they digested their feed, Cronin said.
"We're going to have to solve this methane puzzle and get the methane solution sorted."
He said it was significant that the agricultural industry recognised it needed to mitigate its emissions.
"It's really important the ag industry has fronted up to the fact that it's got to do something here."
This was where the seaweed trial came into play, along with other possible methane inhibitors such as Fonterra's Kowbucha probiotic.
Investing and innovating in potential solutions like these was all part of the co-op's aspiration to be Net Zero carbon by 2050, Cronin said.