Carbon News
  • Members
    • Login
      Forgot Password?
    • Not a member? Subscribe
    • Forgot Password
      Back to Login
    • Not a member? Subscribe
  • Home
  • New Zealand
    • Politics
    • Energy
    • Agriculture
    • Carbon emissions
    • Transport
    • Forestry
    • Business
  • Markets
    • Analysis
    • NZ carbon price
  • International
    • Australia
    • United States
    • China
    • Europe
    • United Kingdom
    • Canada
    • Asia
    • Pacific
    • Antarctic/Arctic
    • Africa
    • South America
    • United Nations
  • News Direct
    • Media releases
    • Climate calendar
  • About Carbon News
    • Contact us
    • Advertising
    • Subscribe
    • Service
    • Policies

NZ’s dairy industry faces an uncertain future – its fate now lies in its ability to adapt

20 Dec 2024

Photo by MRC Témiscamingue on Unsplash


New Zealand’s dairy sector faces an uncertain future due to several challenges, including water pollution, high emissions, animal welfare concerns and market volatility.

All of these issues are building tensions and changing public perceptions of dairy farming.

 

In my new research, I argue the time has come for the dairy sector to adopt a “just transition” framework to achieve a fair and more sustainable food future and to navigate the disruptions from alternative protein industries.

 

The concept of a just transition is typically applied to the energy sector in shifting from fossil fuels to renewable energy sources.

 

But a growing body of research and advocacy is calling for the same principles to be applied to food systems, especially for shifting away from intensive animal agriculture.

 

Aotearoa New Zealand’s dairy sector is an exemplary case study for examining the possibilities of a just transition because it is so interconnected in the global production and trade of dairy, with 95% of domestic milk production exported as whole-milk powder to more than 130 countries.

 

Environmental and economic challenges

 

New Zealand’s dairy sector faces significant threats. This includes environmental challenges such as alarming levels of nitrate pollution in waterways caused by intensive agriculture.

 

The sector is also a major source of emissions of biogenic methane from the burps of almost six million cows in the national dairy herd.

 

Debates about how to account for these emissions have gone on for many years in New Zealand. But last month, the coalition government passed legislation to keep agriculture out of the Emissions Trading Scheme.

 

This means livestock farmers, agricultural processors, fertiliser importers and manufacturers won’t have to pay for on-farm emissions. Instead, the government intends to implement a pricing system outside the Emissions Trading Scheme by 2030. To meet emissions targets, it relies on the development of technologies such as methane inhibitors.

 

In addition to environmental challenges, global growth and domestic initiatives in the development of alternative dairy products are changing the future of milk production and consumption.

 

New Zealand dairy giant Fonterra is pursuing the growth of alternative dairy with significant investments in a partnership with Dutch multinational corporation Royal-DSM. This supports precision fermentation start-up Vivici, which already has market-ready products such as whey protein powder and protein water.

 

Fonterra’s annual report states it anticipates a rise in customer preference towards dairy alternatives (plant-based or precision-fermentation dairy) due to climate-related concerns. The company says these shifting preferences could pose significant business risks for future dairy production if sustainability expectations cannot be met.

 

Pathways to a just transition for dairy
What happens when one the pillars of the economy becomes a major contributor to environmental degradation and undermines its own sustainability? Nitrate pollution and methane emissions threaten the quality of the land and waterways the dairy sector depends on.

 

In my recent study which draws on interviews with people across New Zealand’s dairy sector, three key transition pathways are identified, which address future challenges and opportunities.

 

  • Deintensification: reducing the number of dairy cows per farm.
  • Diversification: introducing a broader range of farming practices, landuse options and market opportunities.
  • Dairy alternatives: government and industry support to help farmers participate in emerging plant-based and precision-fermentation industries.

 

While the pathways are not mutually exclusive, they highlight the socioeconomic and environmental implications of rural change which require active participation and engagement between the farming community and policy makers.

 

The Ministry of Business, Innovation and Employment recently published a guide to just transitions. It maps out general principles such as social justice and job security.

 

But the guide is light on advice for agricultural transitions. My work puts forward recommendations to shape future policy for a more just and sustainable dairy future. This includes issues such as navigating intensification pressures, supporting the development of alternative proteins and fundamentally supporting farmer agency in the transition process.

 

For the dairy transition to be fair and sustainable, we need buy-in from leadership and support from government, the dairy sector and the emerging alternative dairy industry to help primary producers and rural communities. This needs to be specific to different regions and farming methods.

 

The future of New Zealand’s dairy industry depends on its ability to adapt. Climate adaptation demands balancing social license, sustainable practices and disruptions from novel protein technologies.

 

Milena Bojovic, PhD Candidate, Macquarie University

 

This article is republished from The Conversation under a Creative Commons license. Read the original article.

print this story


Related Topics:   Agriculture

More >
New Zealand
More >

NZ off-track for 2030 methane target

Thu 6 Nov 2025

By Liz Kivi | New Zealand is no longer on track to meet its 2030 methane target, according to the Ministry for the Environment.

Is climate law change a first nail in the coffin for Climate Commission?

Thu 6 Nov 2025

The Government’s sweeping overhaul of New Zealand’s climate laws has drawn sharp condemnation, with one expert predicting it's another step towards 'the beginning of the end' for the Climate Change Commission.

Rod Carr at last year's Climate Change and Business Conference

Govt climate policy set by vested interests to delay emissions cuts - Carr

Thu 6 Nov 2025

By Liz Kivi | Rod Carr, former Climate Change Commission chair, says the Government’s move to unlink the Emissions Trading Scheme from our international climate target to 2030 undermines the credibility of emissions pricing as a tool for climate action – and is yet another Coalition Government policy designed to benefit vested interests rather than ordinary New Zealanders.

AgriZero backs first nitrous oxide solution with $1.2m investment

Thu 6 Nov 2025

By Shannon Morris-Williams | A Kiwi ag-tech start-up developing a device for cows to wear to drastically cut nitrous oxide emissions has secured $1.2 million in government-industry funding.

Govt weakens climate legislation, strips CCC’s powers

Wed 5 Nov 2025

By Liz Kivi | The Government has announced sweeping changes to key climate legislation, including stripping the independent Climate Change Commission of one of its core roles, and removing the requirement that Emissions Trading Scheme settings align with international climate targets.

Supermarket fast-track a ‘cynical ploy’, risks climate and environmental protections

Wed 5 Nov 2025

By Shannon Morris-Williams | The Government’s “express lane for supermarkets” announcement has been met with fierce backlash, with critics calling the Fast-track Approvals Amendment Bill a Trojan horse that strips environmental protections, sidelines communities, and hands sweeping powers to ministers at the expense of democracy.

Z Energy settles greenwashing case over ‘quitting petrol’ claims

Tue 4 Nov 2025

By Shannon Morris-Williams | Z Energy has settled a landmark greenwashing case over claims it misled the public about moving away from petrol – a result Lawyers for Climate Action NZ says delivers long-overdue accountability.

Here comes the sun: solar surge gathers pace

Tue 4 Nov 2025

More than $700 million of new solar investment advanced last week, underscoring the pace of the renewable buildout.

Te Ngaengae Pool and Fitness aimed to be New Zealand’s most sustainable pool when it opened last year, through reduced carbon emissions and lower energy use.

Hutt City Council slashes gas emissions

Mon 3 Nov 2025

By Shannon Morris-Williams | Hutt City Council is set to cut its gas emissions by 60% by 2026 as it speeds up phasing out fossil fuels from public facilities.

Experts warn new science curriculum sidelines climate urgency

Mon 3 Nov 2025

Climate change education has been pushed too late and too lightly in the Government’s draft science curriculum, experts say, with students not formally learning about climate change until Year 10.

Carbon News

Subscriptions, Advertising & General

[email protected]

Editorial

[email protected]

We welcome comments, news tips and suggestions - please also use this address to submit all media releases for News Direct).

Useful Links
Home About Carbon News Contact us Advertising Subscribe Service Policies
New Zealand
Politics Energy Agriculture Carbon emissions Transport Forestry Business
International
Australia United States China Europe United Kingdom Canada Asia Pacific Antarctic/Arctic Africa South America United Nations
Home
Markets
Analysis NZ carbon price
News Direct
Media releases Climate calendar

© 2008-2025 Carbon News. All Rights Reserved. • Your IP Address: 216.73.216.63 • User account: Sign In

Please wait...
Audit log: