Arla Foods is launching its FarmAhead™ Customer Partnership program to enhance climate reduction efforts and support biodiversity. This initiative integrates Arla’s fresh milk pool in Danish retail and foodservice with a data-driven approach to lower the carbon footprint of dairy production. The program features FarmAhead™ Check, Incentive, and Innovation components, and expands on successful UK partnerships to other European markets in 2024.
Arla Foods, a major player in the dairy industry, is taking a significant step forward in its climate action strategy with the launch of its new FarmAhead™ Customer Partnership program. This initiative builds on Arla’s existing climate reduction efforts and aims to support both its farmer owners and customers in achieving their sustainability goals.
Overview of FarmAhead™ Partnership
Arla Foods is expanding its sustainability efforts by integrating its entire fresh milk pool in Danish retail and foodservice into the FarmAhead™ Customer Partnership program. This move is designed to align Arla’s data-driven climate reduction strategies with the growing demand from customers for dairy products with a lower carbon footprint. By participating in this partnership, customers gain access to detailed data on the climate impact of dairy production, which can be utilized in their own Environmental, Social, and Governance (ESG) reporting and to support their Scope 3 emissions reduction targets.
Key Components of the FarmAhead™ Program
1. FarmAhead™ Check
Formerly known as Climate Check, FarmAhead™ Check is one of the world’s largest externally validated datasets on dairy production. It covers 99% of Arla’s milk pool. Farmers provide data on various aspects of their operations, which is then verified to calculate the specific climate footprint per kilogram of milk. This data offers insights into emissions sources and identifies the most effective reduction strategies.
2. FarmAhead™ Incentive
The FarmAhead™ Incentive, previously the Sustainability Incentive Model, is a point-based system designed to reward farmers for their climate and biodiversity efforts. Farmers earn points based on their performance in reducing environmental impact, which translates into a premium of 0.03 EUR cents per kilogram of milk. Annually, up to EUR 500 million is allocated to encourage and accelerate these sustainability efforts.
3. FarmAhead™ Innovation
FarmAhead™ Innovation focuses on exploring and integrating new technologies and refining data to further enhance the climate impact reduction strategies and biodiversity protection.
Impact and Expansion
Arla launched the FarmAhead™ program in the UK in 2023 under the name “Customer Sustainability Program.” This initial phase, which included partnerships with major retailers such as Aldi, Asda, and Morrisons, successfully covered over 1 billion kilograms of milk. Following positive feedback and momentum, Arla is now rolling out the FarmAhead™ Customer Partnership program across its core European markets in 2024.
The consolidation of Arla’s sustainability efforts under the FarmAhead™ brand highlights the company’s commitment to a data-driven approach with tangible results. Over the past two years, Arla has reduced its carbon footprint by nearly 1 million tones of CO2e, demonstrating the effectiveness of its initiatives.
Arla Foods’ Commitment
Arla Foods, owned by over 8,400 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg, and the Netherlands, is a leading international dairy company. Known for brands like Arla®, Lurpak®, Puck®, and Castello®, Arla is dedicated to sustainable farming and operations. It is also the world’s largest manufacturer of organic dairy products, further underscoring its commitment to providing nourishing dairy products while advancing sustainability in the industry.
The new FarmAhead™ Customer Partnership program represents a significant advancement in Arla’s sustainability strategy, providing valuable support to both its farmers and customers in their efforts to reduce climate impact and promote biodiversity.
