Mars pledges US$27M to reduce dairy farm emissions through tech development and cash incentives

Mars is launching the Farmer Forward Program with Fonterra, a leading global dairy supplier. The initiative, supported by a US$27 million investment over five years, aims to help dairy farmers adopt climate-smart agricultural practices and contribute to Mars’ goal of reducing greenhouse gas (GHG) emissions by 50% by 2030 compared to 2015.

Approximately half of the investment will fund on-farm tools and technology for about 2,000 Fonterra dairy farmers. In comparison, the remainder will provide financial rewards of up to US$15,000 annually for approximately 165 farmers who show the most progress on sustainability goals.

The program spans 26,000 hectares of farmland, equivalent to 50,000 NFL football fields, and is expected to cut 150,000 metric tons of Mars’ scope 3 emissions from dairy by 2030. The initiative forms part of Mars’ Moo'ving Dairy Forward program, launched last year to support GHG emission reductions across its dairy supply chain.

“Dairy farmers play a critical role in advancing climate-smart agriculture,” said Amanda Davies, Chief R&D, Procurement and Sustainability Officer at Mars Snacking. “This program provides financial support to help farmers achieve sustainability goals while reducing emissions.”

Mars aims to address dairy’s significant contribution to its carbon footprint, as dairy accounts for 65% of GHG emissions in Mars’ snacking portfolio. 

Reducing emissions in this area is a key step in the company’s broader sustainability goals outlined in the Mars Net Zero Roadmap, which targets net-zero emissions by 2050. Mars has reduced GHG emissions by 16% since 2015, increasing annual sales by 60%.

“Fonterra and Mars have been working together for decades, with sustainability really taking a front seat in recent years. Fonterra has clear ambitions when it comes to climate, and it's through partnerships like this with Mars that we can support our farmer owners with achieving our targets,” says Charlotte Rutherford, director of sustainability at Fonterra. 

More than 200,000 cows supply dairy for Mars’ iconic confectionery brands. However, raw ingredients account for 65% of the total GHG emissions from Mars’ snacking portfolio. 

Reducing these dairy-related emissions plays a significant part in meeting the greater sustainability ambitions outlined in the Mars Net Zero Roadmap to achieve net zero GHG emissions across the company’s full value chain by 2050. 

Since 2015, Mars, Incorporated has decreased its GHG emission by 16% worldwide while increasing its global annual sales by 60% over the same timeframe.