So, how does it work?
The FarmAhead™ Incentive Model is a points-based system. Participating farmer owners earn points when they meet the criteria for selected on-farm activities included in the model. Different activities are worth different numbers of points.
You can see the activities currently included in the model and how many points they are worth in the overview below.
The activities and criteria are informed by data from our annual FarmAhead™ Checks and input from external experts.
Farmer owners can currently earn up to 117 points across five categories. Each point adds 0.03 eurocent per kilogram of milk to the farmer’s monthly milk payment until January 2027, increasing to 0.04 eurocent thereafter. Farmer owners who submit data through the annual FarmAhead™ Check receive an additional 1 eurocent per kilogram of milk.
The activities, criteria and points may be updated as methodologies, data and scientific knowledge develop.
Why we introduced the model
Dairy production generates greenhouse gas emissions, including emissions associated with farming. Arla has an SBTi-validated target to reduce absolute Scope 3 FLAG greenhouse gas emissions by 30.3% by 2030, from a 2020 base year. The target covers emissions associated with raw milk and sourced whey. Read about the target and the measures in our Climate Transition Plan.
The FarmAhead™ Incentive Model is one of the measures included in the plan. It links selected on-farm activities to the milk price. Simply put: more points mean a higher incentive payment as part of the milk price.