Pāmu has reintroduced the controversial feed palm kernel expeller (PKE) on its conventional dairy farms, reversing the policy it adopted in 2016. CEO Mark Leslie says sustainability, animal welfare and profitability all contributed to the decision.

Pāmu released information about the change today in response to an Official Information Act request from Greenpeace Aotearoa.

“We haven’t hidden it locally, but we didn’t go out with a lot of fanfare,” he says.

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 in that region, and its use is being considered for farms on the West Coast.

Leslie says the original decision to phase out PKE was made on the assumption it would be cost-neutral, supported by premiums for PKE-free conventional milk. Those premiums did not materialise, while alternative supplementary feeds became more expensive.

“When you stack up that conversation around looking at sustainability, looking at animal welfare, looking at alternative sources of feed, this as a feed source is a relatively cheaper option at times of the year.

“It’s an option that is available when others sometimes don’t become available during a drought period.”

PKE is a byproduct of broader palm processing rather than the primary driver of palm production. Pāmu sources PKE only from suppliers who participate in the Roundtable on Sustainable Palm Oil (RSPO), he says.

Leslie says PKE will not be used on Pāmu’s organic farms.

“From an organics perspective, it’s pretty clear around the standards you need to meet, and doesn’t meet those standards.”

He says supplementary feeds are used strategically to support animal welfare and manage climatic variability.

“It’s still going to be in those couple of percentage points of what our overall diet is for those animals – the foundation of the system will be pasture-fed.”

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