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Fonterra’s Dairy Development Programme is supporting farmers in emerging markets to lift production, without increasing greenhouse gas emissions, benefitting farmers and their families, the co-operative and local communities.Dairy is a nutritional cornerstone for millions of people around the world. In many developing countries, it is also an economic one. Milk production from one or two cows contributes to household livelihoods, food security and nutrition and often provides women with a means to supplement family income.It is an area where significant gains can be achieved simply because current productivity is so often constrained by resources and practices. Better feed, better genetics and simply sharing knowledge can increase production and farmer incomes without increasing herd numbers or greenhouse gas emissions.For Fonterra Co-operative Group, turning potential into production is at the heart of our Dairy Development programme. We believe that when farmers can produce more and earn more, their health, families and communities are economically stronger and more sustainable. We tailor programmes to the needs of each country, while incorporating UN Sustainable Development Goals for dairy development. Working alongside farmers in emerging markets, we are enabling them to overcome constraints on production, invest in their animals and ultimately become part of a safe, secure supply chain. We currently have programmes in Chile, Sri Lanka, Indonesia and Japan where we are using our strengths as dairy experts to build a strong, more productive local industry. We are also contributing to China’s dairy development.We use two key criteria to decide when and where we invest in Dairy Development projects. First, the project must make good commercial sense and fit into our local growth strategy, particularly around sourcing additional milk locally to meet consumer demand. The investment also needs to help Fonterra to meet the needs of our stakeholders in these countries. By building strong relationships with governments, industry, farmer and consumer groups in key markets, Dairy Development helps to ensure a strong and secure basis for our business to grow. Sri Lanka is a prime example. In 40 years in the market, Fonterra has made our Anchor™ brand Sri Lanka’s most recognised and there is growing demand for our fresh dairy products as well as those imported from New Zealand.While Sri Lankan farms are typically small, producing around 20 hand-milked litres per farm per day, Dairy Development is enabling them to be a valued and growing part of our local supply chain, benefitting the co-operative as well as local communities. Our demonstration and training farm has trained more than 3,500 farmers in farm management including fodder management, animal nutrition, milk quality, animal welfare and farming economics. They are also supported by a network of more than 20 supplier relationship officers. Our investment in seven milk chilling centres means we can collect over 35,000 litres from 4,000 local farmers and process it into quality fresh dairy for the local market. Fonterra Dairy Development in Indonesia takes the form of an award-winning scholarship programme, run in partnership with the Directorate General of Livestock and Animal Health Services. Since 2013, it has trained and provided long-term support to 48 dairy farmers and government support officers. This scholarship has helped participants increase milk production, improve milk quality, drive on-farm efficiencies and improve herd health – all things that help to drive farm profitability and ensure these farming families are producing safe, high quality milk and generating better returns for themselves. It is a programme where knowledge gained becomes knowledge shared, with scholarship recipients going on to run farmer-to-farmer training, seminars and workshops. In 2016, more than 1,200 farmers and industry participants attended training sessions held by last year’s scholarship recipients. New Zealand farmers are considered to be among the best in the world. Through Dairy Development, they are passing on their skills to counterparts around the world in volunteer programmes and through hosting in New Zealand. This combination of formal and volunteer support is a winner for us, our industry and the many farmers who have gained more skills, milk and income. ■Above: Dairy Development in Sri Lanka is enabling small farmers’ success“WE TAILOR PROGRAMMES TO THE NEEDS OF EACH COUNTRY, WHILE INCORPORATING UN SUSTAINABLE DEVELOPMENT GOALS FOR DAIRY DEVELOPMENT ”CASE STUDY 2: BETTER PRACTICES, BETTER PRODUCTION, BETTER RETURNS064 SUSTAINABLE DEVELOPMENT GOALS (SDGs)