Fonterra is not opposed to other companies joining the Clean Streams Accord.
The accord is a voluntary agreement between Fonterra, the Government and regional councils. It has been in place for six years.
But the latest assessment of the accord by the Ministry of Agriculture says the national level of non-compliance by Fonterra suppliers is 12%.
Both Fonterra and the Minister of Agriculture describe this as 'unacceptable'. The company is to impose financial penalties for those who continue to breach these conditions.
Milk supply director Barry Harris says he would not be opposed to other companies signing the accord to improve the industry's environmental performance.
He says the attitude of most companies is very similiar to Fonterra's and they have similar expectations of their farmers.