Arla wants to better reward low-carbon milk

CEO Peter Tuborgh said this in an interview with Bloomberg.
Arla has yet to determine the exact amounts that members can earn.

Twenty point plan
The idea is to use a scoring system with twenty criteria. A reward is awarded for each point that is achieved or passed. For example, it could be scored with the use of natural (feed) additives to reduce methane emissions, the application of other housing techniques and precision farming. Tuborgh: "The more you do for the climate, the higher the milk price we will pay."

It is not clear whether the new system will replace the current reward for climate-friendly farmers (reward €1,00 per 100 liters of milk). The new program is still being worked on, but it could come into effect as early as next year. 

63% less emissions
The new program is an important building block for Arla's overarching climate plan. It states that the climate emissions of the member companies must be reduced by 63% by the end of the current decade. To meet the climate targets set, Arla is already investing in trucks that no longer run on fossil fuels and is increasingly working with renewable energy. FrieslandCampina presented a more or less comparable climate plan last week.

Arla is also investigating how dairy farms can capture more CO2 in crops and the soil, how to extract biogas from manure and how farmers can generate electricity with solar energy. These options could also be included in the new milk reward system.

Arla wants to limit CO2 emissions because cow's milk is the second largest source of emissions from animal food production in the EU in terms of size, the company says. It refers to the World Food Organization FAO.

As mentioned, the 9.000 Arla members already receive a premium for climate-conscious entrepreneurship. Partly because of this, they emit on average only half the amount of CO2 per kilo of milk than the global average. However, Tuborgh thinks that climate neutrality should also be feasible for Arla.