Tesco has announced today (Monday, November 4) the launch of a farmer-led partnership with milk suppliers, Arla and Müller UK & Ireland, to accelerate the sustainability transition within the dairy sector.

The Future Dairy Partnership serves to unite the dairy industry under common environmental objectives, which include the reduction of carbon emissions, a commitment to higher animal welfare standards and enhanced nature restoration efforts.

All 400 farmers of Tesco’s Sustainable Dairy Group (TSDG) will collaborate and will be consulted in the partnership, with Tesco broadening their outreach to additional stakeholders in the dairy industry for further input and support.

Arla Farmer, Will Hosford and Muller farmer and joint chair of the TSDG, Dave Jones, 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 while 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,” they said.

According to Tesco, climate change is already having an impact on food production in the UK with uncertainty regarding future outlook already impinging on the supply of milk, putting food security at risk.

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.

Chief commercial officer at Tesco, Ashwin Prasad, 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 ground-breaking 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.”

Building on the foundation of TSDG, the established Arla and Muller milk pool, which supplies Tesco, the new partnership will see the two milk processors working together to innovate, pool resources, and expediating a more resilient and sustainable future.

Elements of the Future Dairy Partnership include:

  • Innovation: Farm projects designed to reduce the industry’s carbon footprint, such as the trial and roll-out of methane-reducing feed additives, as well a dedicated farmer focus group and the testing of new levers. 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, while ensuring farmers and processors have the flexibility to select the methods that best suit their operations while still meeting these targets.

Managing director at Arla Foods UK, Bas Padberg, said:

“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.

“The time is now to unite, invest, and make a lasting impact for generations to come.”