Dairy co-op Arla to pay farmers more for milk if climate targets met
The dairy co-operative Arla Foods has announced it will pay its farmers more money for the milk they produce if they meet new environmental sustainability targets.
Arla is introducing the “sustainability incentive” with the aim of promoting and funding the reduction of emissions on the farms of its 8,900 members, based in the UK and six other European countries including Denmark, Sweden and Germany.
The goal is to help the co-op reach its target of reducing emissions on farms by 30% for each kilo of milk produced by 2030, and of reaching carbon net zero by 2050.
The launch of the incentive – which will be paid out to farmers from July 2023 – marks a big shift for the co-operative’s milk pricing model, linking the sum received by each individual milk producer to their sustainability efforts.
“The milk price Arla farmers will receive for their milk will not only depend on fat, protein and quality, it will also depend on their activities on sustainability,” said Arla’s chair, Jan Toft Nørgaard.
Arla members, including 2,300 British dairy farmers, will be able to access the extra payment by earning points based on the number of activities they undertake on their farms, according to the co-op’s models. Those who fail to improve their sustainability and collect below the average number of points will see a reduction in the money they are paid for the milk.
Farmers can collect points from their actions in different areas, including the efficient use of protein and fertiliser, animal feed, the delivery of manure to biogas production, and use of renewable electricity.
They will be able to receive 0.03 euro cents (0.02p) per kilo of milk for each point they achieve, up to a maximum of three euro cents.
At the scheme’s launch, producers
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