John Stevenson: Chair of Fonterra's Co-operative Council on the company offering dairy farmers compensation for sustainability efforts - Heather du Plessis-Allan Drive

Fonterra dairy farmers will be able to earn cash for their climate efforts - beginning from June.

The dairy giant has announced it will pay an extra 1-5 cents a kilogram of milk solids to farms that meet climate criteria, and more for some farms.

The criteria takes into account emissions from cow feed, fertiliser, animals and drained peat soils - minus any carbon removed by trees and vegetation.

Chair of Fonterra's Co-operative Council, John Stevenson, says this financial incentive will make a material difference to the farmers who receive it. 

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