Greenpeace spokesperson Sinéad Deighton-O’Flynn says that Fonterra’s claim that Anchor butter is ‘100% New Zealand grass-fed’ is greenwashing, because up to 20% of a Fonterra dairy cow’s diet could be imported palm kernel linked to deforestation of rainforests in Southeast Asia.

The lawsuit says that, since at least July 2024, Fonterra’s Anchor butter packaging has carried the claim ‘100% New Zealand grass-fed.’

Deighton-O’Flynn says the claim is a blatant example of greenwashing, to downplay the co-operative’s reliance on palm kernel. “They have been trying to convince customers that the Anchor butter they’re buying is 100% New Zealand grass-fed when this is far from the reality.

"Fonterra is misleading their customers through this branding, presumably to make themselves appear more environmentally friendly and sustainable," she says.

Anchor Butter packaging

"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. We think shoppers would be shocked to know that the block of ‘grass-fed’ butter they pick up at the supermarket could actually be linked to the destruction of orangutan habitats in Southeast Asia."

A spokesperson for Fonterra confirmed they had received proceedings from Greenpeace but told Carbon News they were not able to comment further at this stage.

New Zealand is the largest importer of palm kernel in the world, with the dairy industry importing nearly 2 million tonnes every year.

For the fourth year running, Fonterra was New Zealand’s largest producer of greenhouse gas emissions, according to data gathered by the Environmental Protection Authority.

Fonterra is also a respondent in a groundbreaking case against major climate polluters, which is currently making its way through the courts.

The dairy giant was also recently accused of greenwashing by Europe’s Changing Markets Foundation’s New Merchants of Doubt report.

Late last year, Fonterra announced intentions for a 30% cut to on-farm methane emissions on average, across its farms by 2030, and its emissions reduction targets were recently approved by the London-based Science Based Targets initiative, which is the world’s top corporate climate-target verifier.