Arla Foods unveils five-year strategy for sustainable dairy production

Arla Foods has announced a five-year strategy to become more sustainable in its dairy production and to responsibly grow its business. 

In the next five years, Arla says that it is prepared to increase its investments in areas including sustainability, product innovation, capacity expansion and digitalisation by more than 40% to €4 billion+.

The company has also unveiled a new retainment policy allocating a higher supplementary payment of €1 billion+ over the next strategy period to support its farmer-owners on their sustainability missions.

Peder Tuborgh, Arla Foods CEO, commented: “We are at a defining moment for dairy and our farmer-owners. The twin challenges of climate change and malnutrition are the most difficult facing our global food systems. It requires urgent action, and dairy is part of the solution.”

He continued: “If there ever was a time to step up and create the future of dairy, it is now. In the next five years, we must collaborate with our owners, customers and partners to accelerate our transformation to a resilient and sustainable dairy value chain fit for the future.”

Across its business, Arla has raised its target to a 63% reduction in greenhouse gas emissions by 2030. This will be done by accelerating its conversion to green electricity, fossil-free fleets and recyclable packaging, as well as by having zero virgin plastics in branded packaging by 2030.

This announcement comes after Arla cut CO₂ emissions by 60,000 tonnes through using energy from biogas last year.