Carbon neutral by 2050: FrieslandCampina invests US$26m in sustainable farmers

10 Feb 2020 --- FrieslandCampina (FC) is investing US$26 million annually in farmers who are pursuing best practices in sustainability. In line with the goals of the EU’s Green Deal, FC aims to be carbon neutral by 2050, through programs such as Foqus Planet and PlanetProof. FC recognizes that financial incentives play a vital role in directing sustainability practices, which is why new programs aim to reward farmers with additional cash when they invest in them.

FoodIngredientsFirst speaks with Els Zeeuwen, Director of Branding and Communications of FrieslandCampina’s Business Group Ingredients, as well as Aurelie Letortu, Senior Corporate Sustainability Manager on the company’s green goals.

“Sustainability is no longer ‘nice to have’ – it’s becoming a license to operate,” says Letortu. “It’s more relevant to our customers and the consumer because it is now driving buying decisions.”

This is supported by Innova Market Insights’ selection of “The Sustain Domain” as a Top Ten Trend for 2020. The market researcher found that global consumers who expect companies to invest in sustainability increased from 65 percent in 2018 to 87 percent in 2019.

“We are on a mission to become fully circular,” says Zeeuwen. “We look at the full value chain from grass to glass. However, as 90 percent of our carbon footprint in the company comes from our farmers, most of our efforts target the farm level,” she notes.

Farm-level advancements
Two notable programs are helping the company to achieve its goals. Foqus Planet is stimulated through funds by FC. Meanwhile, PlanetProof is funded through passing a price increase onto the consumer. “We remunerate our farmers even if we do not see a payback in the market. This is something we are willing to pay for,” stresses Letortu.

The first step FC took was to ensure each one of its 18,000 cooperative farms were being monitored. “Everything starts with measuring. That’s the first phase in decreasing our carbon footprint significantly,” says Letortu. The process gives a score to calculate progress on reducing greenhouse gas (GHG) emissions and allows FC to tailor advice to farmers on which next steps to take for the maximum impact. In addition to reducing its carbon emissions, FC is also setting parameters to increase biodiversity. “We already see the program paying off. We have decreased our GHG emissions by nearly 5 percent from 2017 to 2018. We also currently have a carbon footprint that is 55 percent lower than the world average and 17.5 percent lower than the European average. Our strategy works for us,” explains Letortu.

FC has also entered into a collaboration with a Dutch organization that certifies farmers who demonstrate a superior level of sustainability as “PlanetProof.” Retail products bearing the PlanetProof logo are more expensive and assure the consumer that the price hike goes directly to funding sustainable dairy farmers.

“It has been well received by the Dutch market and the farmers are also very enthusiastic about it. Up until now, they didn’t see how all of their work and efforts would be viewed in the market. For them to have this recognition is extremely important,” notes Letortu.

Dairy over plants?
Zeeuwen believes that dairy is key to providing better nutrition for the world. “The world’s population continues to grow, which means so does the demand for food and drinks that nourish,” she adds.

“We believe in the goodness of dairy. We also understand there’s a role for plant-based protein, especially when you look at the growing world population. However, equally important is giving consumers access to high-quality proteins and dairy has consistently been shown to be a complete source of protein,” Zeeuwen continues.

“Consumption of dairy for a sustainable planet is supported by the EAT-Lancet Commission, whose objective is to find a healthy and sustainable way to feed the 10 billion people who are to be expected to be the global citizens by 2050, notes Letortu.

“We believe in healthy and sustainable diets where plants are combined with dairy proteins,” says Zeeuwen. Other opportunities for dairy include the area of gut health as research on the microbiome is coming to the fore. “The prebiotics market is forecast to be more than double between 2016-2024, that’s a place we see potential in for the entire dairy sector,” she says.

On the path to sustainability, Letortu believes that FC’s commitment to a carbon-neutral 2050 is important not only for the planet, but also to demonstrate to the entire dairy industry a new way of working.

By Missy Green