Fonterra

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Owned	NZL
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Dairy product manufacturer

New Zealand's largest company. Fonterra is owned by almost 11,000 dairy farmers, some 95 per cent of all dairy farmers in New Zealand. It is presently the world's largest exporter of dairy products, exporting 95 percent of production to 140 countries.

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Company Assessment

PRAISE	CRITICISM	INFORMATION
Fonterra Co-operative Group Ltd
FAIRR Protein Producer Index The Coller FAIRR Protein Producer Index is a comprehensive assessment of how this sector is managing critical sustainability risks such as climate change, increasing biodiversity loss, land use change and the growth in antibiotic resistance. This company was rated as low risk. [Source 2018][More on Habitats] Packaging Council of New Zealand member Member of The Packaging Council of New Zealand, a voluntary agreement to encourage waste minimisation. [Source 2019][More on Packaging] CDP Climate Change Score of B In 2018, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to reduce greenhouse gas emissions and mitigate climate change risk. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Climate Change Score of B. [Source 2018][More on Climate Change]	Supply chain practices in China This company received a score of 8.5/100 (retrieved 25-Feb-2020) in the Corporate Information Transparency Index (CITI), a system for evaluating supply chain practices in China, particularly in regards to environmental management and water pollution. Scores are calculated using government compliance data, online monitoring data, and third-party environmental audits, as well as trends in the environmental performance of factories in the company's supply chains. [Source 2020][More on Habitats] Fined over contamination scare In April 2014 Fonterra was fined $A280,000, in charges over the 2013 whey protein contamination scare, which impacted New Zealand's reputation as a safe food exporter. At the time it was thought that 38 tonnes of whey protein concentrate had been contaminated with a botulism, which triggered a global recall. Testing later confirmed the scare was a false alarm. In June 2014 Fonterra was fined a further NZ$150,000 in related charges. Fonterra was also ordered to pay 105 million euros to French food giant Danone over the contamination scare. [Source 2014][More on Product Safety] Irresponsible Marketing This company is named and shamed in IBFAN's 2017 report, 'Breaking the Rules, Stretching the Rules 2017', evidence of violations of the International Code of Marketing of Breastmilk Substitutes, compiled from June 2014 to June 2017. The report covers 792 Code violations from 79 countries and by 28 companies. [Source 2017][More on Irresponsible Marketing]	Palm based animal feed A 2011 report by Greenpeace criticised Fonterra for using palm-based animal feed from cleared forests in Indonesia and Malaysia, making a significant contribution to the carbon footprint of its milk products. In 2016, after 7 years of campaigning by Greenpeace, Fonterra committed to using only responsible palm oil products. Greenpeace is calling on Fonterra to implement a full phase-out of palm-based animal feed. [https://bit.ly/2HmYIgS] [Source 2011][More on Palm Oil] Misleading health claims In July 2012 the New Zealand Advertising Standards Authority forced Fonterra to amend its website after complaints about five "misleading" health claims for its dairy products. [Source 2012][More on Irresponsible Marketing] Most controversial companies of 2013 This company appeared sixth on RepRisk's top ten "Most Controversial Companies of 2013". Companies on the list were severely criticised during 2013 by the world's media, governments and NGOs. Criticisms of Fonterra included contaminated milk products, anti-competitive activities, and pollution in New Zealand. [Listed under Information due to age of report] [Source 2013][More on Human Rights] Joint venture with Nestle Fonterra and Nestle started a dairy products joint venture called Dairy Partners Americas in 2003, which operates in Argentina, Brazil, Chile, Venezuela, Ecuador and Colombia. Nestle is the target of a long-standing boycott call. [Source][More on Governance] Price fixing in China In 2013 China fined six companies, including this one, a total of $110 million following an investigation into price fixing and anti-competitive practices by foreign baby formula makers. [Source 2013][More on Governance] Organic products Some of the products this company sells are certified organic by AsureQuality [Source 2018][More on Eco-Certification] Sustainable Agriculture Initiative member This company is a member of the Sustainable Agriculture Initiative (SAI) Platform, the main food industry initiative supporting the development of sustainable agriculture worldwide. Created by Nestle, Unilever and Danone in 2002, the SAI Platform is a non-profit organization to facilitate sharing, at precompetitive level, of knowledge and initiatives to support the development and implementation of sustainable agriculture practices involving the different stakeholders of the food chain. [Source 2019][More on Multi-Stakeholder Initiatives] Farm animal welfare The 2017 Business Benchmark on Farm Animal Welfare (BBFAW) report ranks global food companies on how they are managing and reporting their farm animal welfare policies and practices. This company appeared in tier 4, "Making Progress on Implementation", with tier 1 being the best, and tier 6 the worst. [Source 2018][More on Animal Rights]

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Fonterra offloads Tamar Valley to Parmalat
17th Dec 2015 — The world's biggest dairy exporter, Fonterra, has sold its Australian yoghurt and dessert business for an undisclosed sum to shore up the profitability of its local operations and improve returns for farmers.

Fonterra will offload the yoghurt business, which includes the Tamar Valley and Ski brands, to Italian dairy giant Parmalat, which moves these products up the Shop Ethical ratings from an F to a C

Read more about Parmalat on their Shop Ethical! company page.

Fonterra
9th Aug 2010 — Fonterra now receive a cross for criticisms by Greenpeace NZ including the use and importation of palm Kernel (PKE) animal feed and its impact on Indonesian rainforest, intensification and fertiliser use, burning coal and domestic deforestation.   [source]

Fonterra buys all of Bonlac, and consolidates Australian businesses
1st Jan 2005 — (AUST >> FOREIGN) Bonlac Foods becomes a wholly owned subsidiary of Fonterra (previously Fonterra owned 50%). Fonterra's three separate brands businesses - formerly known as Bonland, PB Foods and Murrumbidgee Dairy Products (MDP) - were brought under the same name, Fonterra Brands Australia, in 2005.   [source]