Fonterra's Anchor brand butter, showing the label claiming it is '100 percent New Zealand grass-fed'. Photo: Supplied/ Greenpeace
Greenpeace is suing dairy company Fonterra for misleading customers by claiming its Anchor brand butter is 100 percent New Zealand grass-fed.
Fonterra's own rules allow up to 20 percent of the diet of their dairy cows to be feed that is not grass, while still able to be considered "grass fed".
Greenpeace said this was a problem, as imported palm kernel feed was linked to the deforestation of rainforests in Southeast Asia, and customers deserved to know that their products were contributing to demand for it.
Greenpeace spokesperson Sinéad Deighton-O'Flynn served Fonterra with the lawsuit on Monday morning at the dairy co-operative's Auckland headquarters.
"Fonterra is misleading their customers through this branding, presumably to make themselves appear more environmentally friendly and sustainable," Deighton-O'Flynn said.
"We think shoppers would be shocked to know that the block of 'grass-fed' butter they pick up at the supermarket could actually be linked to the destruction of orangutan habitats in Southeast Asia."
Greenpeace suing Fonterra for allegedly misleading customers
Greenpeace spokesperson Sinead Deighton-O'Flynn told Checkpoint if a product claimed to be 100 percent grass fed everything the cow ate must be grass.
"The anchor butter blocks have a logo on them that says 100 percent New Zealand grass fed when actually Fonterra's own grass fed standard only requires 80 percent of the cow's diet to be grassed and the other 20 percent can be made-up of palm kernel which is a product of the palm industry, so it could be linked to deforestation in Southeast Asia."
Deighton-O'Flynn said Fonterra was at liberty to make up its own definition, but said the issue was about transparency.
Anchor is one of a number of brands owned by Fonterra, alongside the likes of De Winkel, Anmum, Fresh 'n Fruity, Kāpiti, Mainland, Mammoth, Primo and Perfect Italiano.
According to data from 2023, New Zealand was the largest importer of palm kernel in the world, with the dairy industry importing nearly 2 million tonnes every year.
Greenpeace's Sinéad Deighton-O'Flynn, serving Fonterra with the dairy company the lawsuit, in Auckland on Monday. Photo: Supplied/ Greenpeace
In a statement on Fonterra's website, the company explained palm kernel expeller (PKE) was a by-product of the palm crop, used as an effective supplementary feed for animals, and in New Zealand it was used during times of slower grass growth, such as during a drought.
"Our farmers are aware of the need to source this responsibly, and we test milk to detect if the expected low use of PKE is being exceeded. We believe our focus on influencing primary palm production is the best way to deliver sustainably produced PKE," it said.
Fonterra said: "We confirm we have received proceedings from Greenpeace. We are not able to comment further at this stage."