Arla allots €500 million to pay milk farmers more for sustainability

Arla Foods will pay farmers more for their milk if they reduce emissions on their farms under its €500 million sustainability incentive scheme.

The scheme is designed to help the company achieve its 2030 emission reduction target.

In addition to the 1 euro cent for submitting Climate Check data, the new incentive system allots up to 3 euro cents per kilo of milk for sustainability-related awards. This might result in a €500 million annual total.

At least €270 million is anticipated to be distributed in the first year through the monthly milk price, which is dependent on farmers' sustainability efforts.

Arla chairman, Jan Toft Nørgaard, noted that the 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.

According to Peder Tuborgh, CEO of Arla Foods, farmers need to accelerate their efforts to be at the forefront of environmentally sustainable dairy.