A Greenpeace report reveals that Fonterra’s sole supplier of Palm Kernel Expeller is connected to 18 of the 25 major palm oil producers involved in extensive deforestation and human rights abuses, undermining Fonterra's promise to maintain an ethical supply chain.

Greenpeace has spotlighted a worsening drinking water crisis in Gore, where the iconic brown trout statue was defaced as part of a protest against rising nitrate levels. The protest links these dangerous levels to intensive dairy practices and the heavy use of synthetic nitrogen fertilizer by the industry, with Fonterra identified as a leading force behind these unsustainable practices.

An OpenSecrets profile details Fonterra's lobbying activities based on Senate Office of Public Records data, covering spending from January 1 to March 31, 2025, with figures downloaded on May 14, 2025. The profile highlights the extent of Fonterra's engagement in political lobbying, raising questions about corporate influence on policymaking.

OpenSecrets data indicates that Fonterra engaged in significant lobbying activities during the early months of 2025, with spending figures compiled from Senate Office of Public Records. The page documents spending from January 1 to March 31, reflecting the company’s efforts to influence policy outcomes.

Greenpeace has accused Fonterra of sourcing palm kernel through supply chains tainted by illegal deforestation activities in Southeast Asia, highlighting connections to mills linked to deforestation in Indonesia’s Rawa Singkil Wildlife Reserve. Despite the company's stated commitment to eradicating deforestation by 2025, evidence suggests that some palm kernel used in dairy cattle feed may originate from illegal plantations, raising serious concerns about Fonterra's supply chain ethics.

An investigation by Amnesty International revealed severe labor abuses, including child labor and unsafe working conditions, at Indonesian palm oil operations linked to Fonterra’s supplier Wilmar International. Despite these allegations, Fonterra’s director of social responsibility stated the company would first discuss the issues with Wilmar and only consider reviewing its business relationship if improvements are not made.

Fonterra Cooperative Group was reported to have spent $50,000 on lobbying efforts in 2019, as detailed by OpenSecrets. This activity illustrates the company’s engagement in political lobbying, which may influence policy outcomes in favor of corporate interests.

An investigative Greenpeace report from September 19, 2018, details how Fonterra, through its sole Palm Kernel Expeller supplier Wilmar, is implicated in deforestation and human rights abuses. The report highlights that palm oil producers linked to Wilmar have cleared over 130,000 hectares of rainforest since 2015, undermining Fonterra’s previous commitments to responsible sourcing.