Read The Times Australia

Daily Bulletin

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

  • Written by: Milena Bojovic, PhD Candidate, Macquarie University
NZ’s dairy industry faces an uncertain future – its fate now lies in its ability to adapt

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.

A cheese board with soem bread and a cheese made from cashews
The development of plant-based and fermentation proteins poses another threat to the dairy sector. Getty Images

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.

Authors: Milena Bojovic, PhD Candidate, Macquarie University

Read more https://theconversation.com/nzs-dairy-industry-faces-an-uncertain-future-its-fate-now-lies-in-its-ability-to-adapt-245148

Business News

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The strategic rise of Bali as Australia’s next essential healthcare support hub

As Australian healthcare providers grapple with unprecedented operational bottlenecks, a new nearshore model is quietly transforming patient care delivery. Forward-thinking organisations,  including...

Daily Bulletin - avatar Daily Bulletin

Cost Savings and Benefits of Using Used Pallets in Logistics

In today’s competitive logistics and supply chain industry, businesses are constantly looking for ways to reduce operational costs without compromising efficiency and reliability. One of the most prac...

Daily Bulletin - avatar Daily Bulletin

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

Practical Ways Australian Workplaces Can Reduce Operating Costs

Reducing business costs doesn’t always mean cutting staff, shrinking services or making the workplace feel bare-bones. In many cases, the smarter savings are hiding in everyday operations: the light...

Daily Bulletin - avatar Daily Bulletin

Executive Recruitment Solutions That Help Organisations Secure Exceptional Leaders

Leadership has a direct impact on organisational performance, employee engagement, strategic growth, and long-term success. Businesses operating in increasingly competitive environments require experi...

Daily Bulletin - avatar Daily Bulletin

Why A WooCommerce Website Designer Matters For Online Growth

Running an online store today requires more than simply listing products and waiting for customers to arrive. Businesses need a website that is fast, reliable, easy to navigate, and designed to suppor...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

DIY Rodent Control Vs Professional Help: When Is It Time To Call The Experts?

Rodents are one of the most frustrating pest problems for Australian property owners. Rats and mic...

Lighting Shop in Perth: How The Right Lighting Can Transform Your Home And Business

The right lighting can completely change the look, feel, and functionality of any space. Whether it ...

Traffic Light System Solutions For Safer And More Efficient Traffic Management

Modern cities and growing communities rely heavily on effective traffic management to ensure safety...

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...