Listen: How Fonterra will deal with 'ambitious' emissions targets

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Fonterra supports the Government's intention to lower New Zealand's emissions says chief operating officer for NZMP, Kelvin Wickham.

This week the Government announced it will be taking a split gases approach to emissions reduction, outlining a 10 per cent reduction in methane emissions by 2030, and a reduction of up to 47 per cent by 2050.

Wickham told The Country Early Edition's Rowena Duncum, Fonterra believed it can work with the targets and still maintain a profitable business model.

Listen below:

NZMP is the biggest seller of dairy ingredients in New Zealand and customers increasingly want products that are sustainable said Wickham.

"Our New Zealand dairy farmers are actually leaders globally in low emission milk production ... we're ahead of the game ... of course, we've still obviously got much more work to do to keep on reducing that."

Although the emission targets are "very ambitious" and "challenging," Wickham reckons Fonterra will roll with the punches.

"As an industry we're not stranger to change. We've stepped up to the plate very, very well over the years ... the question is now how do we move forward".