Fonterra also outlined its plans to reward farmers who go beyond expectations on animal welfare and environmental protection in the 2019/20 season.

Spurway said the co-op would bring together existing milk quality, animal welfare and environmental activities into a single, simpler framework.

“While the focus will be on recognising farmers for doing a great job on farm, the small minority of farmers who do not meet minimum standards will still be subject to demerits and other measures,” Spurway said.