Tesco and Arla launch groundbreaking sustainability partnership to help transform the dairy industry

In an unprecedented move, Tesco and its milk suppliers Arla and Müller UK & Ireland have joined forces to launch a farmer-led partnership which aims to put sustainability at the heart of the dairy industry. The launch of the Future Dairy Partnership marks a significant step towards uniting the dairy industry to accelerate reduction of emissions, farm in harmony with nature and commit to higher animal welfare standards.

With climate change already impacting food production in the UK, uncertainty regarding the future of the dairy industry is leading to a reduced supply of milk and has the potential to effect food security. To tackle these issues, Tesco, Arla and Müller have pledged to bring together organisations from across the dairy industry to reduce on-farm emissions by 30% by 2030.

With both Arla and Müller uniting in the partnership, all 400 of Tesco’s Sustainable Dairy Group (TSDG) farmers across the UK will be part of the initiative. The suppliers and retailer are also broadening the partnership by reaching out to other organisations across the dairy industry for input and support.

Ashwin Prasad, Chief Commercial Officer at Tesco said: “We’ve been playing a leading role in transitioning to a low carbon agriculture sector for some time, through the close long-term partnerships we have with our Tesco Sustainable Dairy Group farmers. The group has pioneered groundbreaking work on a number of areas, including animal welfare improvements, carbon foot-printing and introducing innovations such as methane reducing additives.

“What’s clear is that to achieve our stretching climate and nature goals, we must work together as an industry to implement transformational improvements at pace, so we’re delighted to be partnering with Arla and Muller on this project. It’s critical we continue to ensure farmers play a pivotal role in this work, and we look forward to working with them as the work of the partnership is established.”

Farmers that supply Tesco are being consulted on the programme and will be key in creating the programme roadmap.

Will Hosford, Arla Farmer and Dave Jones, Muller farmer and joint chair of the TSDG, said: “As farmers, we are custodians of the countryside and our animals, and want to leave our farms in a better place for future generations. Through our longstanding relationship with Tesco, Arla and Muller, we have collaboratively set out standards to measure our carbon footprint, improve animal welfare and biodiversity on our farms.  All whilst still producing highly nutritious food at an affordable cost.

“We recognise that there is even more to be done and that will require additional effort and cost. Through this partnership and collaboration with the industry, we can share our experiences and benefit wider farmers to secure a more sustainable future for dairy.”

How the Future Dairy Partnership will accelerate the transition

Building on the foundation of the Tesco Sustainable Dairy Group*, the established Arla and Muller milk pool which supplies Tesco, the partnership will see the two milk processors working together to innovate, share learnings and collaborate to go faster in reducing emissions. The Future Dairy Partnership will drive progress across several key areas, including:

• Innovation: The partnership will include on farm projects, such as the trial and roll-out of methane-reducing feed additives, as well as exploring new levers through a dedicated farmer focus group, who will test nature-led initiatives alongside reducing their carbon footprint. Additionally, the partnership will review how to up-scale these innovations for adoption across the UK dairy industry.

• Industry reports: An industry-wide report will be produced that highlights the pathway to more sustainable dairy and the innovation and financial support needed across the agriculture sector to achieve this ambition.

• Sustainable Dairy Blueprint: This document will provide farmers with clear guidelines on sustainability targets and ethical practices, whilst ensuring farmers and processors have the flexibility to select the methods that best suit their operations and still meet these targets.

Bas Padberg, managing director at Arla Foods UK, comments: “The UK dairy industry puts natural, nutritious food on the table for millions of people every day. But we also know that we must accelerate our action to address the ongoing challenges that the climate emergency presents to our food system.

“We can do more together than we can alone and with real collaboration we can drive a transformation. That’s why through Arla’s initiation of the partnership, Arla and Tesco welcome the rest of the dairy industry to join us on this journey. With all our major fresh milk supply customers already on the Arla FarmAhead™ Customer Partnership, we are now in a strong position to lead the change that is needed, together with our farmer owners. The time is now to unite, invest, and make a lasting impact for generations to come.”

Rob Hutchison, chief executive of Müller Milk & Ingredients, said: “We know our customers and consumers expect us to play a role in driving positive environmental changes within the dairy industry, and our commitment to this is underlined by our ambition to reduce emissions from our supplying farms by 30% by 2030.

“We’re delighted to work together with Tesco and Arla on initiatives like the Future dairy partnership which are key in helping us achieve our goal of creating a better dairy future.”

ENDS