Gunson McLean Ltd

How the Co-operative Difference Payment works

20 February 2022

Fonterra introduced the Co-operative Difference Payment (CDP) in 2021. It introduced this because it believed that farms that sustainably produce higher quality milk help to increase the value of all the Co-operative’s milk. From 1 June 2021, up to 10 cents of each farm’s milk payment will be determined by the farm’s sustainability credentials and milk quality.


“The new payment recognises farmers who are already going above and beyond because they’ve innovated and invested early, and it also offers farmers more encouragement for taking the steps required to meet the changing expectations of customers and communities, both today and into the future” says Richard Allen, Group Director, Farm Source at Fonterra.


The Co-operative has introduced a new milk payment parameter to implement this payment. The parameter is used to value a particular farm’s milk to the Co-operative. This means each farm may be paid a different amount per milk solid relative to the Co-operative average.


At present the parameters include the fat and protein composition of the milk, and the volume. Going forward these parameters will include the achievement of Te Pūtake and Te Puku. The CDP will be made at the end of the year in the final retro payment.


How can you reach Te Pūtake? You will need to meet achievements in four focus areas:

  1. Co-op and Prosperity – you need to keep full and accurate Farm Dairy Records and submit them by 30 June 2022
  2. Environment – you must have a Farm Environment Plan in place that focuses on the achievement of all good farming practices by 2025 and must be achieving at least three of four of the following key practices:
  3. the farm’s purchased nitrogen surplus is at or lower than the target;
  4. all on-farm plastics and unused agrichemicals are managed through an approved product stewardship scheme such as AgRecovery or Plasback;
  5. there is no discharge of dairy shed effluent to water;
  6. 80% farm-grown feed across the season.
  7. Animals – have and implement an Animal Wellbeing Plan developed with and signed by your veterinarian addressing nutrition, health, environment and behaviour.
  8. People and Community – you will need to complete all three sections of the DairyNZ Workplace 360 assessment and achieve 100% on the foundation level.


If you reach Te Pūtake you will receive 7 cents per kgMS.


For farms that meet Te Pūtake, the next step is Te Puku. To achieve Te Puku, you’ll need to achieve milk quality excellence on at least 30 days during the season. These do not need to be consecutive days. You’ll then receive an additional 3 cents for every kgMS supplied during the season that meets the excellence standard.


The amount and targets will be set annually by the Fonterra Board. The total amount available to be paid to Fonterra’s farmers does not change, but a proportion of the Farmgate Milk Price will be available to be redistributed between farmers to better reflect individual farm’s achievement against the Co-operative Difference Framework.

20 February 2025
The end of the financial year is fast approaching, so if you’re balance date/end of financial year is 31 March, there are a few things you need to do to help us prepare your financials. Take a stocktake If your business sells products or has stock, you’ll need to do a stocktake on 31 March. If you’re a business that sells products, then you need to take a stocktake of your physical inventory. If you’re a farmer, then you need to take a physical livestock tally. Send in your EOY papers Compile a folder (digital or hard copy) with a copy of the following documents: Bank statement that shows the balance on 31 March 2025 for all your bank accounts and loans. Insurance invoices. ACC invoices. Loan statements for the year (if applicable). Any new loans or refinancing documents. Invoices for assets purchased and sold. GST workings and reports. Submit the online questionnaire You’ll also need to fill out and submit the online questionnaire. You should receive an email from us in April/May, with a link to fill out and submit the questionnaire. If you haven’t received an email with the link by the end of May, let us know.
17 February 2025
At Gunson McLean we are more than just a business offering financial expertise we also support our communities in Dargaville and Whangārei. By partnering with various local organisations, we help sustain and strengthen sports, recreation, and community initiatives in the region. Empowering Local Sports Clubs We understand the role sports play in bringing people together, promoting teamwork, and supporting youth development. We are proud to sponsor the Old Boys Marist Rugby & Sports Club, Hikurangi Rugby Football Club Inc, Maungakaramea Hockey Club, Maungakaramea Bowling Club, Mid Western Rugby Squash Club, Kamo Rugby & Squash Club, New Zealand Vikings Rugby Football Club Inc., and the Cobham Cricket Club. Promoting Outdoor Education We also believe that outdoor education is essential for youth development and are proud to work with the charitable trust, Pātaua Outdoor Education & Recreation Trust (POERT). We have been closely involved in the Trust’s activities for the past 8 years – handlings its financial matters – and Craig Gunson is the current Treasurer. Backing Community Halls & Facilities We’re proud to support the Whareora Hall Society and Whareora Cemetery Board as well as local cycling and motorcycling groups Marsden Wheelers Cycling Club Inc., and the Whangārei Motorcycle Club. We are passionate about the causes we support, and the opportunities and growth this enables in our Dargaville and Whangārei communities.
7 February 2025
Most people agree that optimising your business is a good idea and spend hours looking at optimising the supply chain, storage, overheads etc. However, they forget that people are one of the most critical elements in your business. By providing a caring, supportive workplace for employees you also drive the success of your business. Studies show happy workers are productive workers and, as an employer, it’s a no-brainer to provide a workplace where employees feel valued, and where they can flourish. Here are five key ways to build employee relationships, nurture your team, and create a great workplace for your employees: 1. Invest in your employees This doesn’t mean ‘casual Friday’s’ or a pizza night once a month. This is about offering your employees access to training programmes, workshops, conferences, and mentorship programmes. It’s about the professional growth of your employee and how you can enhance their skills and make them feel truly valued as team members. 2. Create a positive work environment Creating a positive work environment is about cultivating a workplace culture that feels positive and supportive of your employees. Be open and transparent with your employees, listen to their feedback and have a strong focus on employee wellbeing. This could include offering flexible working arrangements, benefits such as health insurance, and other perks. 3. Recognise and reward your employees When an employee goes above and beyond, make sure your recognise and reward them. This could by through a performance bonus, employee-of-the-month programmes or even extra time off in lieu. Feeling valued comes partially from feeling rewarded and can be an amazing motivator. 4. Give employees autonomy One of the key ways employees feel trust, is by being given autonomy. Being trusted to come up with their own solutions, processes, and ideas is key to making people feel as if they ‘own’ their role. This helps employees feel fully involved and also brings new ideas, solutions, processes, and efficiencies to the table. 5. Put wellbeing at the heart of your culture Life is stressful. And work-life can be stressful. A well though out wellbeing programme can help your employees manage stress and, in turn, benefits your business. A wellbeing programme is different for each business but some ideas could be checking in with team members, creating a ‘ask for help’ culture, flexible working arrangements including work-from-home days, and offering mental health support. Making sure you’re a caring and supportive employer is vital to your business strategy. With a team who feel valued, nurtured, and encouraged, you’ll all be happier and more productive.
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To discuss all your account matters please call us on 09 438 1001

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