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Climate Adaptation

Dairy Giant Arla Wants to Pay Farmers More for Low-Emission Milk

The reward program would incentivize the use of greener agricultural practices such as feed that cuts methane emissions and precision farming techniques.

Dairy cows in the milking area at Bizkaigane farming cooperative in Spain.

Dairy cows in the milking area at Bizkaigane farming cooperative in Spain.

Photographer: Angel Garcia/Bloomberg
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Dairy giant Arla Foods is willing to pay European farmers extra for milk based on how many carbon-reducing activities they can tick off a company list.

The reward program would cover about 20 variables, such as using natural additives in feed to cut methane emissions by cows or following precision farming techniques, Chief Executive Officer Peder Tuborgh said in an interview. The bonus amounts still need to be determined, and the plan could be implemented as soon as next year.