New Zealand fights for dairy sector

In New Zealand, the implementation of the climate agreement has put the agricultural sector on edge. There is a lot at stake, because New Zealand is home to a large part of the population emission of greenhouse gasses by methane. While in other countries this is often a by-product of industry, here it is the sheep and cows that cause the most emissions.

Do not include methane?
Methane is considered a gas that is more harmful than CO₂, but remains in the atmosphere for a much shorter time. This was the reason for agricultural advocates to argue that methane should not be included in the so-called 'zero carbon', New Zealand's elaboration of the climate agreement. 

Fonterra takes a different stance in the discussion, but states that it is not looking for a way to limit methane emissions to 0. There is talk in politics about including the agricultural sector in the European emissions trading system (ETS). This means that the agricultural sector must pay for the emissions that arise on farms. That is something that can mean a significant increase in production costs.

This resulted in protest, because the foreign competition not directly related to this. However, also because there are no affordable alternatives available. Fonterra states that if methane pricing reflects the high price of CO₂ will mean that methane production can then be reduced. However, this is at the expense of the New Zealand economy, farmers and the rural community. To accommodate the sector, politicians now want to tax only a 5% share. That would amount to 40 million New Zealand dollars per year, or a 0,17% price increase in milk powder.

Climate also useful
The climate also offers opportunities for a major player like Fonterra. They see this as a way to avoid an obligation set out in the Dairy Industry Restructuring Act. This obligation states that there is an open-door policy for new suppliers and for extra milk from current suppliers. In this way, the processor would only want to accept companies or liters of milk that score well in terms of climate. Are these also the less efficient companies?

Methane production is also under the magnifying glass in the Netherlands. Where waste processing can limit emissions by reducing waste, this is much more difficult in livestock farming. Manure seems to offer opportunities, but on the other side it is really the cow and its metabolism. In New Zealand they have discovered, through research, that feed efficiency and the breed no effect have on methane emissions.

Is compensation the key?
In New Zealand they tend to take a milder approach to methane, until there are options to compensate for this. Since dairy farming drives the economy in this country, it is also a good training ground for Dutch dairy farming. Dutch research has already indicated that the ration can be a key to the solution, but in New Zealand grass takes the leading role and the solution will have to be sought from a different angle.