Synlait partners with Nestlé to to reduce dairy emissions
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The news: New Zealand dairy company Synlait has joined Nestlé in a three-way partnership with its farmer suppliers to help fund on-farm emissions reduction tools.
The numbers: The anticipated investment, the value of which was not disclosed, will be shared three ways between Synlait, Nestlé and its farmer suppliers across a seven-year period.
The context: Synlait said the partnership is focused on "pragmatic on-farm solutions" that improve efficiency, such as effluent management systems, emissions-friendly feed options, advanced soil testing, alternative fertilisers, and tree planting.
The ASX- and NZX-listed company added that this "new kind of customer partnership" will help it reach its greenhouse has emission targets, as well as opening potential new commercial opportunities to work with Nestlé.
What they said: Synlait CEO Grant Watson said: "This is a great example of proactive, industry-led solutions driving innovation across the supply chain, serving our customers' demand for high quality, low-emissions products".
"The partnership aims to reduce the cost of implementation and accelerate farmer adoption of emissions reduction tools," he said. "Its leveraging technologies that are available in the market right now and will expand over time to include emerging technologies as they become available."
Nestlé's global chief procurement officer Patricia Stroup said: "Dairy is both our single biggest ingredient by volume, and our largest source of Scope 3 greenhouse gas emissions, accounting for around 21% of our total emissions".
The source: ASX announcement
