How Arla farmers are rewarded for their sustainability activities FarmAhead™ Incentive

How Arla farmers are rewarded for their sustainability activities

We’ve introduced FarmAhead™ Incentive to support and reward our farmer owners in their efforts to reduce their climate footprint. Here you can dive into the finer details of how the model works.

How the model works

So, how does the model work? It’s a point-based system that rewards past and future climate and environmental sustainability activities. For every activity, the farmer can collect points if they meet specific criteria. Each point that the farmer achieves will trigger 0,03 eurocent per kilo of milk they deliver to Arla. Activities with the biggest improvement potential trigger the most points.

You can see which activities are included in the model and how many points they are worth in the picture below.

The activities that we’ve included in the model are based on our annual FarmAhead™ Checks and consultancy from external experts. We’ve included the activities that we’ve identified as the potentially most impactful, feasible and cost-efficient for our farmer owners to lower their farm’s carbon footprint and improve protection of nature and biodiversity.

Farmers can currently score a maximum of 80 points, but as the sustainability agenda and science matures, we will add more options to the model. 

The model is designed to reward farmers with up to 3 eurocents per kilo milk from the model plus 1 eurocent per kilo milk for taking part in the annual climate check as part of their monthly milk payment.

Learn more about how the model works in the video below.

Why we've introduced the model

We are proud of being part of the dairy industry and bringing nutritious and tasty dairy to the world, but we also acknowledge that dairy production emits CO2e and contributes to climate change. As one of the world’s largest dairy producers, we have a responsibility to do our part in reducing our negative impact on the climate and the nature surrounding our farms.

Most of the dairy industry’s greenhouse gas emissions happen on farm. Here at Arla, our target is to reduce CO2e emissions from farms by 30 per cent per kilo milk by 2030.

That’s why we’ve created FarmAhead™ Incentive. To reward our farmer owners for their work to reduce their climate footprint and improve protection of nature and biodiversity. Simply put, the more they do the more they are paid for their milk.

Q&A about Arla’s FarmAhead™ Incentive model