Fonterra updated it terms of supply to stop the practice of calf slaughtering on farms for non-replacement animals unless there are humane reasons for doing so.

From June 2023, male or non-dairy calves must be used for other purposes such as meat or pet food.

Fonterra co-op group is owned by around 9,000 New Zealand farmers and is responsible for approximately 30% of the world's dairy exports - with revenue exceeding $22 billion.

Fonterra is the sixth-largest dairy company in the world and the biggest in the southern hemisphere.

The slaughtering of male or bobby calves has been coming under scrutiny in New Zealand and globally - with Ireland having its own issues regarding the slaughtering of young calves.

In an update to Fonterra terms of supply, the co-op has told farmers that all calves must be reared to beef, calf-veal or pet food.

In a statement, Fonterra said: "We’re proud that Fonterra farmers are already world leaders when it comes to animal well-being.

"As part of our strategic choice to lead in sustainability, Fonterra places a strong emphasis on calf well-being and a big part of this is ensuring that all dairy calves have a useful life," the statement continued.

From June 1, 2023, Fonterra farmers must ensure all their non-replacement calves enter a value stream - either beef, calf-veal or petfood.

"We understand sale options in parts of New Zealand are currently limited, which is why we’re actively collaborating with the wider industry, investing in R&D [research and development] and exploring long-term solutions such as dairy-beef partnerships and opportunities," the co-op concluded.