Greenpeace Aotearoa says it plans to sue Fonterra for what it says are misleading claims the co-operative’s Anchor butter is “100% New Zealand grass-fed” when many of its farmers use imported palm kernel as a supplement.
A spokesperson for the environmental group served Fonterra with the lawsuit this morning at the dairy co-op’s Auckland headquarters.
Fonterra said it had received the proceedings.
“We are not able to comment further at this stage,” the co-op said.
Greenpeace spokesperson Sinead Deighton-O’Flynn said the grass-fed claim was a “blatant greenwash” from Fonterra.
“Fonterra is misleading their customers through this branding, presumably to make themselves appear more environmentally friendly and sustainable,” she said.
Palm kernel being transported in Indonesia. Photo / Greenpeace NZ
“Palm kernel is a product of the palm oil industry, an industry known for rainforest deforestation, human rights abuses, illegal operating and driving rare wildlife towards extinction,” she said.
New Zealand is the largest importer of palm kernel in the world, with the dairy industry importing nearly two million tonnes every year.
Palm kernel extract (PKE) is a byproduct of Southeast Asia’s palm oil industry.
The feed, while initially unappetising to cows, becomes acceptable when pasture is scarce due to its energy and protein content. The feed’s cost-effectiveness depends on its price compared to milk, DairyNZ says.
In a statement released on its website early this year, Fonterra said PKE is used as an effective supplementary feed for animals, including dairy cows in New Zealand, when there is less grass growth, such as during a drought.
“Our farmers are aware of the need to source this responsibly, and we test milk to detect if the expected low use of PKE is being exceeded,” the statement said.
“We believe our focus on influencing primary palm production is the best way to deliver sustainably produced PKE,” it said.
Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.
