Arla Foods, a dairy giant, has recently created a new incentive program to help farmers deliver on its 2030 emissions reduction goals.
Starting next year, the milk price each individual Arla farmer will receive from the dairy co-op "will be dependent on his or her activities related to environmental sustainability," the company stated.
This program will build on Arla's Climate Check program, which has around 8,000 farms across seven European countries providing detailed climate data that allows the cooperative to track its supply chain emissions.
The goal is to ensure that the company delivers on its target to cut its Scope 3 supply chain emissions by at least 30% per ton of standardized raw milk by 2030.
"The Sustainability Incentive model is a historical milestone in Arla's transition to more sustainable dairy. We are introducing an advanced and ambitious sustainability incentive, which is a fundamental change to our milk price model. Going forward, the milk price Arla farmers will receive for their milk will not only depend on fat, protein, and quality, but it will also depend on their activities on sustainability. The support from our members, even in a time of great uncertainty, is a testament to our commitment to being at the forefront of progressive dairy farming and set the standard for how to push our whole sector forward," says Arla's Chairman Jan Toft Nørgaar.