He told the annual meeting of the NZ Sustainable Business Council that Fonterra was prepared to lead, but it would achieve freshwater quality improvements only by working in partnerships.
These would be along the lines of the Living Waters partnership between Fonterra and the Department of Conservation, now working in five of the most crucial catchments.
Fonterra was holding discussions with DOC over how that effort could be extended to 50 catchments and over what time frame.
It would need input from regional authorities and communities to prioritise the huge task, he said.
“We are going to step up the pace on water. In NZ everyone is passionate about water, and so are we.
“We want to show NZ that we share the same passion and ambition for swimmable rivers. We have to share responsibility and we have to be good stewards.”
Spierings said the partnerships would be with communities, sheep and beef farmers, land owners and tourist operators.
“Living Water has taught us a huge amount and we are making a significant impact on the initial regions,” he said.
“Now we want to amplify those results with the launch of a new initiative that will target 50 catchments.
“Our immediate focus will be on working with communities, government and key partners to identify the catchments and develop a strategic framework for the programme.
“This is a major undertaking and we need to get it right, but we are committed to making substantial progress,” Spierings said.
He gave no time frame, title or the size of the financial commitment by Fonterra.
He said the board of directors and Fonterra’s farmers knew that productivity in dairying needed to go up at the same time as its footprint needed to come down.
When he first came to Fonterra in 2011 he looked at the Clean Streams Accord, introduced in 2002, to facilitate waterway riparian fencing and planting on farms.
He now described it only as a “qualifier” for the industry in the social context, to show that it was serious about water quality.
He then introduced Milk For Schools and Living Waters and appointed Richie McCaw as a Fonterra ambassador, moves that he now called “basic corporate responsibility 101”.
Fonterra had therefore over a decade or more established its base for sustainability in all facets – environmental, employment, communities and for shareholders.
Spierings said sustainability was a longer-term imperative and it had to become part of Fonterra’s DNA.
If not, the value created by his V3 strategy and the disruptive technologies now being introduced would be eroded.
“If you don’t do sustainability, you will lose value for the shareholders,” he said reflectively.
Sustainability applied along the value chain, from farming to consumers, and it would be built by embracing new technologies over the next decade.
At one end were agricultural and clean energy technologies, and genomics, moving on to food safety and traceability, plant robotics and blockchain technologies.
At the consumer end was e-commerce and digital interconnectedness, where product choices were made partly on the reputation of the producer.
“If this is all connected well it will create value for consumers and for our shareholders, divided about 80:20, I believe.”
Therefore sustainability was central to Fonterra’s strategy across the areas of malnutrition, obesity and diet, water and the environment, climate and energy, and productivity.
Concluding his address, Spierings said: “It is time for Fonterra to move from qualifying to differentiating. Let’s make it happen, together.”
