Arla Foods introduces a sustainability incentive to its farmer owners to help fund and motivate actions required to hit the 2030 emission reduction target on farm.
Two years after implementing a comprehensive Climate Check on 8,000 farms across seven European countries, Arla farmers are taking another significant step to be at the forefront of environmentally sustainable dairy. From next year, the milk price that the individual Arla farmer will receive from the dairy cooperative will depend on his or her activities related to environmental sustainability.
“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 farmer’s will receive for their milk will not only depend on fat, protein and quality, 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 be 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 Nørgaard.
“The Sustainability Incentive will be an effective tool for driving further improvements. Arla farmers are already well on their way to becoming more sustainable, however, they also recognise that they need to accelerate their efforts to be at the forefront of environmentally sustainable dairy. With this historical step, we will stand stronger in the market and send a clear message to our customers and consumers that the necessary change comes at a price for our owners and that a fair amount of the money you pay for Arla products is directed to the farmers who take the most action,” says Peder Tuborgh.
If you want to know more about Arla’s and its farmer owners’ activities to drive down emissions, read more in Arla's 2022 climate check report: Climate check report