FrieslandCampina partners with McDonald’s to slash GHG emissions in dairy

17 Oct 2023 --- McDonald’s and FrieslandCampina have joined forces to reduce the greenhouse gas (GHG) emissions in dairy production supplied to the fast food giant in the Netherlands and Belgium by 14% by 2025. The partnership focuses on support and reward for dairy farmers amid the ongoing climate change impacts plaguing the F&B industry, particularly the dairy sector.

The collaboration “directly contributes to the reward of member dairy farms for their efforts,” by tracking their progress through an Annual Nutrient Cycling Assessment tool and offering financial incentives.

FrieslandCampina supplies key ingredients to McDonald’s for its product portfolio, including McFlurry, sundaes, milkshakes and meat replacers like Valess.

A FrieslandCampina spokesperson tells Food Ingredients First:
“The 14% reduction of greenhouse gas emissions in 2025 is not the end goal, but a step in a longer journey. By working together to reduce greenhouse gas emissions in the dairy supply chain, both companies aim to inspire others within the industry to follow suit and contribute to a more sustainable future.” 

“This fits into the ambition of both companies to achieve net zero carbon emissions worldwide (McDonald’s) and net climate neutral production (FrieslandCampina) by 2050.”

When asked about the role of policymakers in battling climate change, the spokesperson told us that promoting sustainable farming practices, providing support for climate-friendly technology, research and innovations and setting standards and regulations that apply to all players are some of the ways by which authorities can foster such efforts. 

“Policymakers can also facilitate partnerships between the dairy industry, government agencies, universities, research institutes and other stakeholders to promote sustainable practices and find solutions to combat climate change. We call this kind of collaboration the golden triangle (industry - government - science).” 

The spokesperson also said that it is important for policymakers to support the industry in transitioning to regenerative farming.

FrieslandCampina's dairy farmers work towards reducing the carbon footprint in dairy farms, leading to eco-friendly ingredients formulation that are then supplied to McDonald's (Image Credit: FrieslandCampina).

The role of dairy farmers
According to a study in the Journal of Dairy Science, understanding the source of emissions in dairy farms is essential in mitigating climate change. Inside dairy farms, emissions come in the form of methane from the animals, methane and nitrous oxide from manure in housing facilities during long-term storage and nitrous oxide again from nitrification and denitrification processes in the soil used to produce feed crops and pasture.

Further, in an evaluation of GHG emissions from the national fluid milk supply chain, scientists found that 72% of the emissions occurred in processes before the milk left the farm. 

FrieslandCampina rewards dairy farmers financially to ensure outdoor grazing and better animal health.To contribute to climate change mitigation, FrieslandCampina’s member dairy farmers use an Annual Nutrient Cycling Assessment tool to get farm-specific insights and results on climate and biodiversity. 

Based on this data, the company rewards the farmers with “financial premiums” by tracking their progress. Further, it also remunerates them for their results on outdoor grazing and animal health and welfare via the Foqus planet sustainable development program.

Roger Loo, president of professional and trading at FrieslandCampina, says: “We measure and track our progress and drive improvement. Over the years, our efforts have resulted in a decrease in the carbon footprint of our dairy products.”

“Our dairy farmers have played a crucial role in this achievement through their commitment to making their dairy farms more and more sustainable.”

According to the company, some of the methods that farmers are adopting to reduce GHG emissions include “lengthening the grazing season,” using feed with a “lower footprint,” adding feed additives to “lower methane emissions,” and segregating “manure and urine” on the farm.

Moreover, dairy farmers also work to generate renewable energy, which is ultimately utilized by FrieslandCampina’s production sites.

The F&B industry as a whole is grappling with the huge challenges of reducing GHG emissions. Last month, trials conducted at Cerzoo, a dairy farm of Università Cattolica del Sacro Cuore in Piacenza, Italy, confirmed the efficacy of DSM-Firmenich's methane-reducing feed supplement Bovaer, that cuts enteric methane emissions by 44% to 50%.

The climate change blow to dairies
The FrieslandCampina spokesperson flags that climate change has significantly impacted the global dairy industry in various ways, such as changes in temperature and extreme weather events.

“Heat stress reduces milk production and increases the risk of diseases for cows.”

As climate change intensifies, lack of access to water for dairy farms may lead to higher costs and less milk production.Erratic temperature and precipitation patterns have burdened farmers with higher supplement costs since the quality and quantity of forage have declined, too.

“Climate change has led to the emergence of new diseases and parasites and the spread of existing ones. This has increased the health risks for dairy cows, leading to higher veterinary costs for farmers.”

The spokesperson further said that water scarcity is another hurdle in dairy production, which requires a significant amount of water for milk production and cow hydration.

“With droughts becoming more frequent and severe due to climate change, access to water for dairy farms may become limited, leading to higher costs and reduced milk production.”

Meanwhile, Joost Elshof, director of supply chain at McDonald’s Netherlands, also flags that climate change is a significant environmental issue facing the industry.

“McDonald’s wants to work with all its partners and suppliers throughout the chain on innovative solutions that limit the negative impact on the climate.”

In another concerning climate change update, FAO’s new report titled “The impact of disasters on agriculture and food security” which we covered yesterday, says that climate change is one of the underlying risk factors behind natural disasters globally. Over the past three decades, it has amounted to an estimated US$3.8 trillion in crop losses.

Meanwhile, crops like cocoa and coffee are also bearing the brunt of climate change, with the heat and unpredictable rain leading to issues like pollinator loss and lowered hops quality for beer.

By Insha Naureen