Dairy farmers supplying milk to Fonterra who haven't yet fenced off all their waterways have been offered a financial inducement to do so.
As one if its conditions of supply, Fonterra is running a water management programme that requires farmers to exclude stock from waterways through permanent fencing or planting by December this year.
To help farmers with the cost , the co-op and its rural retail arm RD1 have launched a fencing promotion which is running for just a week.
The deal includes big reductions on fencing materials and an interest free offer.
Fonterra's global sustainability director Bruce Donnison says so far 87% have fenced off waterways and he is confident farms will meet the stock exclusion goal.
Mr Donnison says the deal also recognises that farmer incomes are under pressure.
Fonterra's stock fencing target is more ambitious than the new water accord that all dairy companies have signed up to.
The new agreement aims to have 90% of dairy cattle excluded from waterways by May next year and 100% by 2017.
As part of its supply contract system, Fonterra has also set deadlines for farmers to meet effluent management and riparian planting goals.