ofi expands dairy sustainability programs with new carbon data insights

Global food ingredients supplier ofi has released its 2025 Dairy Tracks impact report, outlining how expanded farm- and facility-level data is helping F&B manufacturers make more informed sourcing decisions, while advancing lower-carbon dairy supply chains.

As pressure mounts on manufacturers to improve Scope 3 emissions reporting and reduce product carbon footprints, the report highlights how ofi is scaling data-driven sustainability programs across its dairy network. The company says its Dairy Tracks initiative is designed to provide customers with more credible, traceable product-level carbon insights, while supporting emissions reductions at the farm level.

According to the report, farms participating in ofi’s dairy sustainability programs contributed approximately 80,000 MT of carbon reductions in 2025, placing the company more than halfway toward its target of reducing 150,000 MT CO2e by 2030.

Key emissions-reduction measures included methane-reducing feed additives, feed ration optimization, and improved manure management practices. These initiatives support ofi’s broader science-based climate targets, which have been validated by the Science Based Targets initiative.

Expanding primary carbon data coverage

ofi sources and manufactures a broad portfolio of dairy ingredients and solutions — including milk powders, cheese, and customized dairy systems — through a network of suppliers, farmers, and owned processing facilities in Malaysia and New Zealand.

A major focus of the 2025 report is the expansion of primary product carbon footprint data. ofi reported that 61% of its dairy volumes now include quantified primary product carbon footprints, providing F&B manufacturers with more granular data to support product-level emissions reporting and procurement planning.

The company says this data foundation is intended to support broader traceability and transparency goals across all dairy volumes by 2030.

Regenerative agriculture and renewable energy

The Dairy Tracks report also highlights progress in regenerative agriculture and renewable energy adoption across ofi’s dairy operations and supplier programs.

In 2025, 24,000 hectares were managed under regenerative agriculture practices, representing nearly half of the company’s 2030 target of 50,000 hectares. Renewable energy accounted for 54% of energy use across ofi-owned dairy processing facilities, moving toward a 2030 goal of 60%.ofi says 61% of its dairy volumes now include primary product carbon footprint data to support F&B manufacturers’ Scope 3 reporting efforts.

The company produced 2.9 billion servings of fortified dairy products, while livelihood support programs reached 1,757 farmer households in Nigeria.

Sandeep Jain, CCO, CEO, and managing director of Dairy at ofi, says dairy manufacturers increasingly require verifiable emissions data that can support both climate goals and supply resilience strategies.

“Dairy is a foundational ingredient across food and beverage applications, from beverages to frozen desserts,” he says. “Customers need evidence they can use — data that stands up to scrutiny and translates into measurable action.”

Supplier engagement and supply chain transparency

The report also emphasizes supplier engagement as a core component of Dairy Tracks. ofi states that its priority dairy suppliers — representing 69% of company volumes in 2025 — have signed its Supplier Declaration Form, committing to standards covering animal welfare, environmental practices, human rights, and ethical business conduct.

The initiative forms part of ofi’s broader Choices for Change sustainability strategy, which includes ambitions to reduce Scope 3 emissions by 30% by 2030 and bring two million hectares under regenerative agriculture practices globally.

Andreas Zweifel, global head of Dairy Sustainability and Climate Action at ofi, stresses that primary farm-level data is critical for identifying emissions hotspots and scaling targeted interventions across dairy supply chains.

“Farm-level data allows us to work directly with farmers and partners on solutions that can deliver measurable reductions,” he explains. “That gives customers greater visibility into where progress is being made and how it can be expanded.”