Bobby calf killing banned in NZ, Aussie dairy knows what's coming

Fonterra updated its terms of supply to state all bobby calves should be raised for beef, slaughtered for calf-veal or the pet food market.

The new rules, which come into effect mid-year, come in response to animal welfare concerns and follows similar policies recently introduced in other countries such as Ireland, Denmark and the United Kingdom.

But Fonterra has no plans to mandate similar requirements in Australia "at this time". Instead it is working alongside industry bodies to address the issue to avoid the risk of having regulations imposed by people who do not understand farming.

READ MORE: Ground is shifting on bobby calves

Solving the surplus calf issue is critical to the dairy industry's long-term sustainability, as there is growing research that shows consumers believe the early slaughter of calves is unacceptable.

Fonterra is a part of the Calf Taskforce, which was convened by Australian Dairy Farmers last year.

By 2035, ADF wants to end on-farm euthanasia of viable calves and instead enter them into a valued market chain.

How the sector gets there is currently being planned out, ADF president Rick Gladigau said.

"We're working towards a future where all dairy calves are able to enter a valued market chain, and where responsible breeding and rearing strategies are widespread," Mr Gladigau said.

"This future would include an end to avoidable routine on-farm euthanasia of viable calves unless there is no other option."

Fonterra's move has not avoid criticism from New Zealand farmers, who raised concerns their farms could not handle the extra calves and the ability of the meat processing industry handle the influx of calves, along with the limited profitability and markets for dairy bobby calves.

READ MORE: Dairy industry must address surplus calf issue

Fonterra's New Zealand farm source group director, Anne Douglas, said the cooperative had been working to expand the commercial opportunities for bobby calves.

"We have been working closely with meat processors, transporters, petfood processors and other industry groups for many months on changes which can be made to support farmers," Ms Douglas said.

"We're also investing in R&D and exploring long-term solutions such as dairy-beef partnerships and opportunities."

Ms Douglas said the industry couldn't afford to be complacent as consumers domestic and abroad became more interested in how their food is produced.

"Other countries and companies have already introduced policies and assurance schemes that provide consumer guarantees about the on-farm treatment of calves," she said.

"It's important Fonterra addresses this complex issue to ensure we remain competitive in the market."