Arla Foods joins forces with AFMP to drive down CO2 emissions from farm to store

In a drive to reduce carbon throughout its operations and support its ambition of being Closer to Nature, Arla Foods is the first dairy processor to include not only its own operations but also those of its supplying members of Arla Foods Milk Partnership in its new environmental strategy.

The company’s overarching targets for its own operations are a 34 per cent reduction in CO2 emissions by 2020, from a 2005 baseline, and that 30 per cent of its energy will come from renewable sources, also by 2020. Arla has also set its sights on a 20 per cent reduction in water usage by 2015 and says zero waste will go to landfill by 2012 by maximising recycling opportunities.

Lars Dalsgaard, Arla Foods UK’s supply chain director, said: "Our targets are challenging and we have deliberately stretched ourselves. Our environmental strategy, coupled with the fact that our new one billion litre fresh milk processing dairy will be zero carbon, is another demonstration of our commitment to being the most environmentally sustainable milk processor."

What the strategy means for Arla’s business

Arla is scrutinising all of its activities within its direct control. Through initiatives including a War on Waste at its dairies to drive down energy usage, the implementation of LEAN ways of working, an industry-leading packaging light-weighting project and introducing dual fuel tractor units and double-decker trailers within logistics, by the end of this year Arla is projecting that it will have reduced its carbon footprint within operations, packaging and logistics by 12 per cent, since 2005. The company is also well on its way to hitting its zero waste to landfill target with 80 per cent of all its waste already reused, recycled or recovered.

What the strategy means for members of Arla Foods Milk Partnership

Recognising that up to 80 per cent of its total supply chain emissions are generated on farm, Arla has committed to funding a long-term programme to support all members of AFMP to reduce the environmental impact of their operations.

Arla’s initiative, which commences in 2011, will see each member of Arla Foods Milk Partnership being offered a carbon assessment of their farm. Over 250 on-farm workshops are also being held to guide farmers through key environmental contributory areas such as lowering culling losses, improving fertility, energy efficiency, reducing lameness, nutrient recycling and reducing mastitis. Speakers at the workshops will be leaders in their field to ensure that attendees gain maximum benefit.

"The project demonstrates our determination to lead the way in embracing the environmental challenges that the dairy industry faces right throughout the supply chain," explained Ash Amirahmadi, head of milk procurement at Arla Foods UK.

"We believe that the project has the potential to reduce carbon emissions at farm level by up to 20 per cent over time although we won’t be setting targets for members’ businesses. This is a huge opportunity for members to get involved because not only is it good for the environment, it makes good business sense through the scope it offers to reduce on-farm costs."

Arla Foods UK plc is home to some of the UK’s leading dairy brands including Cravendale, Lurpak and Anchor. Processing approximately two billion litres of milk a year Arla continues to be one of the UK’s leading dairy companies and a supplier of fresh liquid milk and cream to the top seven retailers.

Over 2,500 daily deliveries are made directly to stores nationwide and Arla brands can be found across the dairy category. As well as the leader of the butter, spreads and margarine sector, and a major supplier of other added value products including flavoured milk and cheese, Arla continues to build working relationships with Arla Foods Milk Partnership, a unique group of dairy farmers, which supplies around 90 per cent of Arla's total milk requirements.

Behind this leading business is a team of circa 2,800 people across the UK located at our dairies, distribution centres and head office.