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Climate & Environment
22 March 2025

Greenpeace Links New Zealand Dairy To Deforestation Crisis

Major concerns arise as Fonterra's palm kernel sourcing threatens endangered species and ecosystems.

Greenpeace Aotearoa has raised alarms over the connection between New Zealand's dairy industry and deforestation in the Rawa Singkil Wildlife Reserve, a site renowned for its biodiversity and featured in David Attenborough’s documentary, "Secret Lives of Orangutans." As of September 2024, two exporting firms reportedly sourced palm kernel from a mill known for purchasing products cultivated illegally within this wildlife sanctuary.

The Rawa Singkil Wildlife Reserve is critical habitat for endangered species, including Sumatran tigers and orangutans. Greenpeace Aotearoa spokesperson Sinéad Deighton-O’Flynn expressed grave concerns, stating, "The Rawa Singkil Wildlife Reserve is a biodiversity hotspot and the last refuge of the critically endangered Sumatran orangutan. It’s a disgrace that New Zealand dairy has any part in its destruction."

Each year, the New Zealand dairy sector, led by Fonterra, spends millions of dollars on palm kernel which contributes to rainforest destruction. Remarkably, New Zealand, designated as the world’s largest palm kernel importer, brings in nearly 2 million tonnes annually from Southeast Asia.

A study conducted by the Rainforest Action Network in 2024 uncovered that 653 hectares of illegal oil palm plantations were operating within the Rawa Singkil Wildlife Reserve, with 453 hectares being productive, meaning that illegal palm oil and palm kernel are already being sold from these areas. Notably, between 2023 and 2024, two major palm kernel exporters to New Zealand—Apical and Musim Mas—were found to have bought palm kernel from PT. Global Sawit Semesta, a mill that traded in products from within this reserve.

Deighton-O’Flynn continued, "New Zealand dairy is marketed as clean, green and grass-fed, but this is just simply not true. Fonterra’s own grass-fed standard allows for its cows’ diets to be made up of 20% palm kernel." The implications of this feeding practice raise troubling ethical questions concerning the sources of animal feed and their environmental impact, particularly concerning the destruction of precious habitats.

In a recent revelation, Greenpeace pointed out that all five palm kernel suppliers exporting to New Zealand were complicit in the operation of illegal palm oil mills in Indonesia. Deighton-O’Flynn emphasized the need for action, asserting that "the use of palm kernel as animal feed must be banned." She pointed out the disconnect between Fonterra's stated sustainability policies and the reality of its supply chain practices. "Fonterra has tried to avoid accountability on illegal palm kernel in its supply chain, by claiming that its suppliers have ‘no deforestation, no peat and no exploitation’ policies, but it is abundantly clear that these policies aren’t working. The rainforest is still being destroyed at an alarming rate," Deighton-O’Flynn stated.

Fonterra, which plays a significant role in shaping the narrative of New Zealand's dairy industry, has faced mounting pressure from environmental activists. Deighton-O’Flynn’s remarks captured this sentiment: "Palm kernel supply chains are incredibly murky. It is virtually impossible for Fonterra to guarantee that its supply chains are not linked to rainforest destruction, so Greenpeace is calling on Fonterra to completely phase out the use of palm kernel on all of its farms." She added, "New Zealanders should not have to worry about whether the butter they’re spreading on their toast is tainted by the killing of orangutans in Southeast Asia."

Simultaneously, in a related sphere, the global community is galvanizing efforts to preserve marine ecosystems. In anticipation of his 99th birthday on May 8, 2025, David Attenborough’s latest film, "Ocean with David Attenborough," aims to spotlight crucial ocean habitats that are essential for a thriving planet. With immersive cinematography, the film showcases coral reefs, kelp forests, and recognizes the critical challenges they face.

The project, which coincides with a global move to protect a third of the world's oceans—a commitment made by nearly every country—aims to awaken a collective sense of responsibility and stewardship for the sea. Attenborough remarked, "My lifetime has coincided with the great age of ocean discovery. Over the last hundred years, scientists and explorers have revealed remarkable new species, epic migrations, and dazzling, complex ecosystems beyond anything I could have imagined as a young man. In this film, we share some of those wonderful discoveries; uncover why our ocean is in such poor health, and perhaps most importantly, show how it can be restored."

As environmental concerns surrounding both land and sea ecosystems become interlinked, the urgency for industries like New Zealand’s dairy to ensure sustainable practices raises pressing ethical questions. Will consumers demand a shift towards practices that uphold biodiversity rather than destroy it? The future of both the rainforests and oceans relies on such crucial shifts to take place in consumer habits and corporate accountability.

With Greenpeace Aotearoa advocating for change in dairy practices and Attenborough continuing to push for ocean preservation, a united front emerges—highlighting the responsibility that falls on consumers, governments, and corporations alike to address the environmental challenges faced by our planet.