increase font size
European dairy co-op Arla wants its farmer suppliers to use more GM-free feed.
European dairy co-op Arla wants its farmer suppliers to use more GM-free feed.
It says the market is increasingly willing to pay a price premium and Arla is well placed to exploit this new opportunity.
Arla's move results from German retailers saying they will pay a premium for products from cows fed non-GM feed. The trend is seen as likely to spread to other markets and Arla wants to move now to add value to its farmers' milk.
Chairman Åke Hantoft says Arla is well prepared to meet the growing demand for GM-free feed.
"We own the biggest organic milk pool in the world, for which the feed is by default GM-free. Our Swedish farmers have always used GM-free feed. This means about 20% of Arla's milk pool already meets this market demand.
"There is commercial potential here for us to capture and build on immediately by attracting more farmers willing to convert to GM-free feed," says Hantoft.
He underlines that the decision is based on the commercial opportunity and does not indicate that Arla's owners are taking a new stand on GM.
"We welcome innovative solutions and new technology which can improve farming and help feed the world's population in a sustainable manner. We are not closing a door on GM and we will continue to monitor the scientific research into the pros and cons of GM."
Converting to GM-free feed will be a cost for the farmers, but the price premium is prompting Arla to plan to compensate farmers as they convert. This model driven by market demand is also used for organic milk, for which farmers are already paid for the extra feed cost.
"Our immediate demand is up to 1 billion kg extra milk during the next 12 months and we expect to be able to pay an extra 1 eurocent/kg milk. The market driven compensation will also be paid to all our Swedish farmers, who already use GM-free feed. We do not know exactly from when, but we are working fast to unfold the details," says chief executive Peder Tuborgh.
Global Dairy Trade (GDT) and Arla Foods have announced that Arla will begin offering European-sourced skim milk powder (SMP) on GDT Pulse from May 2025 as part of an extension to the GDT Pulse pilot.
European dairy co-operative Arla Foods is forecasting a total revenue of nearly $25 billion this year.
Danish co-op Arla is now paying a monthly incentive to its farmer shareholders for sustainability efforts.
European dairy co-operative Arla Foods is eyeing a fibre-based cap for its milk cartons.
Plastic used for Arla's cheese production is finding new life in a large-scale test with German partner Südpack.
Among this year’s Primary Industry NZ (PINZ) Awards finalists are a Southlander who created edible bale netting and rural New Zealanders who advocate for pragmatic regulation and support stressed out farmers.
Rockit Global has appointed Ivan Angland as its new chief operating officer as it continues its growth strategy into 2025.
Nominations are now open for the Horticulture New Zealand (HortNZ) board.
A Mid-Canterbury dairy farmer is bringing a millennial mindset to his family farm and is reaping the rewards, with a 50% uplift in milksolids production since he took over.
OPINION: People have criticised Christopher Luxon for the time he’s taken to appoint a new chief science advisor.
A new Indonesian school milk programme is expected to significantly increase the country's total dairy consumption, creating opportunities for New Zealand and other global dairy players.
