Alternative feed costs prompt supplement change

Palm kernel is back on the menu for Landcorp Farming cows on conventional farms in the central North Island and on the West Coast, the state owned enterprise says.

It released the news in response to an Official Information Act request from Greenpeace to support informed public discussion and avoid misunderstanding or speculation about its farming practices.

Bringing back the supplement has not been a quick or easy decision, says CEO Mark Leslie. “We have worked through it carefully over several years, with robust discussion and debate.” “Ultimately, we have had to make a balanced decision considering sustainability, commercial realities, impacts of climate variability and animal welfare facing our business while setting ourselves up for the long term. “Being bold is one of our values, and in this case, it means making a considered decision that supports a sustainable and resilient farming model.”

The country’s largest farmer phased palm kernel expeller out of its farming systems in 2016. At the time, it was believed the decision would be costneutral and supported by premiums for PKEfree conventional milk. Those premiums have not materialised, while alternative supplementary feeds have become significantly more expensive.

PKE was first reintroduced on some conventional dairy farms in April 2025, after a drought was declared in the central North Island. Since December 2025, it has been available as a flexible supplementary feed option on conventional dairy farms in that region to help manage ongoing feed and cost pressures. Its use is also being considered for conventional dairy farms on the West Coast of the South Island.

Leslie says the organisation recognises palm-based products raise strong views. “For this reason, we have sought assurance on supply chains and workforce conditions from suppliers and only source from those who participate in the Roundtable on Sustainable Palm Oil (RSPO).”

He says organic farms do not and will not use PKE. Landcorp remains NZ’s largest supplier of organic milk, and organic production continues to be the pathway where genuine PKEfree premiums are realised.