Arla Foods is launching the biggest update to its FarmAhead Incentive since the model began rewarding farmers in 2023. By giving farmer owners more ways to earn points and increasing the financial value of each point, the cooperative aims to accelerate actions that reduce the climate impact of milk production on farm. The update builds on years of proven results where Arla farmer owners have reduced their absolute emissions from raw milk production by 1.2m tons CO2e since 2020.

The principle behind FarmAhead Incentive is simple. Farmers earn points for documented actions to reduce CO2e emissions on their farms, and those points directly influence the price they receive for their milk. It puts a financial incentive worth up to EUR 550m annually behind actions scientifically linked to reducing emissions, making climate action part of the everyday business of dairy farming.

In 2027, the FarmAhead Incentive will increase from 84 to 111 available points and increase the value of each point from EUR-cent 0.03 to EUR-cent 0.04 per kilo of milk. Six new action areas and changes to existing ones will give farmers across different farm types and geographies more opportunities to reduce the climate impact related to milk production and be rewarded for doing so.

“With FarmAhead Incentive, we link actions to reduce the climate impact of milk production on farm directly with the milk price paid to our farmers. That is a powerful way for a farmer-owned cooperative to drive change. Now we are taking our biggest step forward since launch, providing more ways for farmers to act and ensuring a higher reward for every point they earn. Our ambition is clear: to turn new technology and knowledge into practical action on farms and accelerate emissions reductions, says Hanne Søndergaard, Executive Vice President, Agriculture, Sustainability and Communication at Arla Foods.

Photo: Arla Foods