Greenpeace is revealing that new data provided by Stats NZ shows that palm kernel imports for the first six months of 2025 are higher than they have been at any point in the last ten years. Greenpeace says this continues to undermine the ‘grass-fed’ claims made by Fonterra and other New Zealand meat and dairy companies.

Greenpeace spokesperson Sinéad Deighton-O’Flynn says “This is a massive increase in the intensive dairy industry’s use of palm kernel, and it’s no doubt leading to an increase in associated deforestation overseas.”

“Due to worsening and more frequent adverse weather events, New Zealand dairy cows are eating more palm kernel than ever before. The dairy industry is the leading driver of climate change in New Zealand – so unless Fonterra and the intensive dairy industry clean up their act, we are going to see this trend continue.”

Earlier this year, parts of New Zealand were struck by the worst drought in 40 years, which Greenpeace says likely contributed to the increased demand for imported feed.

Palm kernel is a supplementary feed for dairy cows that comes from deforested areas across Southeast Asia. New Zealand is the world’s biggest importer of the feed, importing almost 2 million tonnes of it every year.

The Stats NZ data indicates that for the first six months of 2025, palm kernel imports were up 40% compared to the same time period for 2024.

Deighton-O’Flynn says, “The New Zealand dairy industry led by Fonterra charges a premium for “grass-fed” products – this is completely incompatible with the fact that its cows are eating palm kernel that comes from areas that were once lush rainforests in Southeast Asia.

“It’s clear that Fonterra’s dairy is anything but grass-fed. There are simply too many cows in New Zealand, and there isn’t enough grass to feed them all, so the industry relies on cheap, dirty products like palm kernel.”

Palm kernel has been the subject of significant controversy due to links to rainforest destruction in Southeast Asia. Earlier this year, an Indonesian Government document revealed that all five of the companies bringing palm kernel into New Zealand were linked to illegal operations in Indonesia.

Additionally, a report by Rainforest Action Network showed that Fonterra’s main palm kernel supplier – Agrifeeds – was linked to illegal operation in the protected rainforest ecosystem highlighted in David Attenborough’s The Secret Lives of Orangutans.

For more information:

Data available on the Stats NZ website at https://infoshare.stats.govt.nz/ using Harmonised System code 230660