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Sir Henry van der Heyden
Chairman
Fonterra
Auckland

Dear Mr van der Heyden,

As you should be aware, there is a growing public concern about the use of palm products, including palm kernel expeller (PKE), due to the palm industry’s impact on the climate, biodiversity, and the indigenous communities living in many parts of South East Asia.

It is widely acknowledged that one of the major drivers of this destruction is the rapid expansion of palm plantations (1) in the region.

The key products that come from the palm industry are palm oils (used mainly in food and cosmetics), and palm kernel expeller (palm kernel), which is used as an animal feed by many of your farmer shareholders.  As you know, Fonterra's farmers buy almost a quarter of the world’s production of PKE.

Only recently, some of the world’s largest multinational companies (including Unilever, Nestle, Burger King and Kraft) have taken steps to avoid being linked to the deforestation caused by the palm industry. Cadbury New Zealand has also stopped using palm oil in its Dairy Milk products after a consumer campaign led by Auckland Zoo.

Fonterra’s continued involvement in the environmentally destructive palm trade not only means Fonterra is becoming increasingly isolated on the world stage, but your company is also risking New Zealand’s clean green reputation.

I am calling on Fonterra to immediately stop using PKE and abandon its model of industrial dairying by adopting the principles of smart farming, which are better for farmer’s profits and the environment (2).

Sincerely,

[firstname] [lastname]

(1) MOFOR (2008) XV, XXI IFCA 2007 ‘Consolidation Report: Reducing Emissions from Deforestation and Forest Degradation in Indonesia,’ FORDA Indonesia

(2) Eco-Efficiency of Intensification Scenarios for Milk Production in New Zealand,’ Claudine Basset-Mens, Stewart Ledgard, Mark Boyes, AgResearch Limited, Ecological Economics, In Press 2007.

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Let Fonterra know that we do not want its industrial dairy model.

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Over the last decade Fonterra’s increasingly industrial approach to dairying has introduced supplementary feeds such as palm kernel expeller (PKE) from South East Asia. Palm kernel imports are expected to reach well over 1 million tonnes this year from virtually nothing in 1999. This is part of an overall shift from pastoral to industrial dairying in New Zealand. As a result, agriculture is now responsible for 49 per cent of NZ's domestic greenhouse gas emissions.

There is no need for New Zealand’s dairy products to be produced at the expense of tropical rainforests, endangered orangutans, New Zealand’s clean green reputation, or the climate.

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