Arla Foods has unveiled new standards aimed at increasing the size of its annual UK organic dairy business from 180 million to 270 million liters over the next five years.
The new goal of achieving more than 50% growth in its organic retail and foodservice business by 2026 comes as the organic category emerges as one of the strongest grocery sectors over the past 12 months. Sales have grown 9.4%, compared to just 5.6% for its non-organic counterparts, the dairy cooperative said.
Under the supplier’s new Organic 2.0 standards, Arla’s organic farmers will need to convert 100% green electricity from renewable sources such as wind, solar, biogas and hydropower.
They will also be tasked with achieving a 30% reduction in CO2e emissions per kg of milk by 2028, two years before the cooperative’s broader 2030 target for conventional farms.
A new list of Organic 2.0 criteria will also go into effect for Arla farmers from January 2022 covering climate impact, soil health, biodiversity and animal welfare (see box below).
In the UK, Arla’s organic milk, butter and cheese products are sold in supermarkets through the Yeo Valley brand as part of its licensing partnership with Yeo Valley Farms, as well as through the farmers’ own labels. retailers and through their Arla free range organic milk.
In addition to the usual industry standards for organic milk, Arla farmers must meet a list of new organic criteria 2.0 as of January 2022, including the following:
Soil health:
- Conduct a soil carbon assessment to create a baseline to measure further improvements in soil carbon levels. Soil samples will be analyzed by an external laboratory to track progress in organic matter, organic carbon, total carbon, total nitrogen, and carbon: nitrogen ratio.
- Beginning in 2022, conduct an annual self-assessment of soil health indicators, for example scoring assessments of soil odor, ease of spreading, and earthworm count.
Biodiversity:
- Annually, self-assess and record biodiversity activities, for example, creating flower-rich pollinator habitats, allowing sections of the land to grow naturally, planting hedges and allowing them to flourish.
- Implement a minimum of seven of the 33 biodiversity conservation measures, which are included in a catalog of ‘best practices’ specially created for Arla farmers.
Weather:
- Participate in Arla’s climate check program (to track and reduce farm emissions).
- Accelerate Arla’s 30% CO2e reduction target from 2030 to 2028.
- Convert to 100% green electricity from renewable energy sources (wind, solar, biogas, hydroelectric).
Animals:
• Increase the minimum number of days cows are on pasture from 120 to 150.
• Provide all animals older than six months with access to cow brushes, with a minimum requirement of one brush per 50 animals or one brush per robotic milking machine, where applicable.
The supplier also sells its organic dairy products to various restaurants and food chains in the foodservice sector under the Arla Organic brand.
Ash Amirahmadi, MD of Arla Foods in the UK, said there is “great potential” for organic dairy in the UK “as more and more British consumers are turning to organic food”.
“As in other parts of Europe, we believe the trend for organic dairy will continue to grow in the UK,” he said.
“Overall, Arla farmers have significantly increased work on farms around biodiversity, reducing carbon emissions and improving animal welfare. Historically, organic farmers have often been the ones to establish new practices in these areas, and with these revised standards, they are once again forging new paths. “
Arla said it hoped to get the initial part of the growth ambition for its organic business primarily through increased production from existing organic farmers.
Last month, Amirahmadi warned of a “much more challenging” second half of the year despite posting good results for the first six months of 2021.