Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Landcorp ditches palm kernel feed

Monday 08 August 2016 09:58 AM

Landcorp ditches palm kernel feed to boost environmental credentials

By Tina Morrison

Aug. 8 (BusinessDesk) - Landcorp Farming, the state-owned farmer, will stop using palm kernel expeller on its farms in the current financial year to shore up its environmental sustainability credentials.

Palm kernel, used by dairy farmers as a supplementary feed to grass during winter or in seasonal droughts, is imported from Southeast Asia and has faced criticism for its environmental impacts as expansion of the palm oil industry spurs tropical forest clearance and peat fires.

Landcorp, New Zealand's largest corporate farmer, wants to move away from being a commodity supplier of agricultural products by developing higher value products, inking long-term contracts with customers, and investing in branding to boost the value of its products. All Landcorp farms will move to alternative, locally-sourced feed supplements by June 2017, chief executive Steven Carden said in a statement.

“One of the real points of difference for New Zealand farming is our ability to grow grass and produce grass-fed animals. There is a growing interest in this food globally,” Carden said. “Landcorp wants our partners and customers to know they can trust that we farm sustainably and care for the environment. We need to anticipate shifting consumer expectations on how their food is produced and change how we farm accordingly. We think there are significant longer term gains in terms of our ability to attract new premium customers.”

He said the shift away from palm kernel, or PKE, is expected to be "virtually cost-neutral".

Landcorp said 60 percent of its farms don't use any PKE. The supplement isn't used on any livestock farms and a few dairy farms are already PKE-free.

In the 2014 financial year, Landcorp’s peak year of using the supplement, PKE represented about 6 percent of the average total diet of a dairy cow, and last year that fell to less than 4 percent.

Guy Salmon, the chair of Landcorp’s independent Environmental Reference Group, said the group had been in discussions with Landcorp on the issue over the last year and it welcomed the announcement.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Fuels Rushing In: Govt "Ready To Act" On Petrol Market Report

The Government will now take the Commerce Commission’s recommendations to Cabinet...
• A more transparent wholesale pricing regime • Greater contractual freedoms and fairer terms • Introducing an enforceable industry code of conduct • Improve transparency of premium grade fuel pricing... More>>

ALSO:

Reserve Bank Capital Review Decision: Increased Bank Capital Requirements

Governor Adrian Orr said the decisions to increase capital requirements are about making the banking system safer for all New Zealanders, and will ensure bank owners have a meaningful stake in their businesses. More>>

ALSO:

Aerospace: Christchurch Plan To Be NZ's Testbed

Christchurch aims to be at the centre of New Zealand’s burgeoning aerospace sector by 2025, according to the city’s aerospace strategic plan. More>>

ALSO:

EPA: Spill Sees Abatement Notice Served For Tamarind Taranaki

The notice was issued after a “sheen” on the sea surface was reported to regulators on Thursday 21 November, approximately 400 metres from the FPSO Umuroa. A survey commissioned by Tamarind has subsequently detected damage to the flowline connecting the Umuroa to the Tui 2H well. More>>

Taskforce Report: Changes Recommended For Winter Grazing

A Taskforce has made 11 recommendations to improve animal welfare in intensive winter grazing farm systems, the Minister of Agriculture Damien O’Connor confirmed today. More>>

ALSO: