New Zealand’s dairy giant Fonterra has reached a settlement with environmental organization Greenpeace by acknowledging that product labeling on its butter likely deceived consumers about cattle feeding practices.
The environmental advocacy group Greenpeace Aotearoa filed the legal action in 2024, contending that Fonterra deceived buyers by marketing its Anchor butter as “100% New Zealand grass-fed.”
According to Greenpeace’s allegations, the packaging used on butter products in New Zealand grocery stores from December 2023 through April 2025 violated regulations because cattle consumed feed beyond grass, including palm kernel supplements.
“An admission of guilt from New Zealand’s biggest company is a massive win against corporate greenwash everywhere. It’s simple: companies shouldn’t be allowed to mislead customers to sell products,” stated Greenpeace spokesperson Sinéad Deighton-O’Flynn.
“Palm kernel is a dry, gravelly cow feed that comes from the destroyed paradise rainforests of Southeast Asia. It isn’t grass, and to claim otherwise is misleading and deceptive,” she added.
In its official response, Fonterra acknowledged that utilizing the contested labeling was “likely to mislead some New Zealand consumers, particularly those unaware of the nature of the feeds that are provided to dairy cows.”
The company confirmed it has eliminated the disputed labeling from Anchor butter product packaging.
Trading activity showed Fonterra stock prices declined by 0.3% following the announcement.
