Dairy goes green?

Since it's Earth Day, why not lead with such a headline. And yet just last week the dairy industry announced that is the direction it is going.

Below is the text of a press release from Dairy Management Inc. (DMI), which I haven't seen appearing in too many places. Yet, in my opinion, I think the release should have received more headlines. The future of the dairy industry in the U.S. may require producers be more conscious of the carbon footprint of the input costs required to produce their milk. In the release, DMI says it hopes to position dairy as a "sustainable" product that will be favorable to environment-concious consumers. I'd recommend the entire piece for your reading. (I didn't link to anywhere because I haven't seen the release popping up on any other major dairy-related websites.)

Dairy industry addresses environmental stewardship

Rosemont, IL - From farm to consumer, dairy industry leaders have joined together to launch a comprehensive sustainability initiative that will encourage industry innovations, improve environmental performance and position the industry for future marketplace demands.

Three national dairy organizations – Dairy Management Inc., National Milk Producers Federation and the International Dairy Foods Association – said the new initiative will bring together producers, processors, manufacturers, distributors, retailers and others in the dairy supply chain to address sustainability.

“The dairy industry recognizes the growing number of people who care about the health and environmental impact of the products they buy,” said Tom Gallagher, chief executive officer of DMI, which manages the national dairy producer checkoff program. “We must do all we can to ensure that consumers know that the dairy industry is committed to improving their lives, both nutritionally and environmentally.”

The initiative will identify key supply-chain innovations that, as part of a comprehensive sustainability effort, can help position dairy as a preferred product among the rapidly increasing number of socially-conscious consumers. Among the focus areas of the effort will be identifying opportunities to reduce energy consumption and costs in milk production and processing, as well as boost on-farm income opportunities in emerging “green” energy markets.

“We want to be sure that our industry is well-positioned to take advantage of future opportunities – both in terms of credits for reductions in greenhouse gas emissions, as well as developing new products and markets for milk,” said Jerry Kozak, NMPF’s chief executive officer. “Importantly, this initiative will help identify opportunities for dairy farmers to generate additional revenue from emerging energy markets through methane capture and other innovations. We also recognize that sustainability needs to be defined in a comprehensive way that acknowledges the socioeconomic benefits that dairy farms can provide,” Kozak said.

“This is a key dairy industry value chain partnership that will allow us to cut energy costs, meet consumer needs and further develop our relationships with dairy buyers,” said Connie Tipton, IDFA’s chief executive officer. “By working together, dairy producers and processors can further demonstrate our industry’s commitment to healthy people and a healthy planet.”

The DMI-coordinated sustainability initiative is initially focused on the twin goals of reducing greenhouse gas emissions and growing the dairy business by meeting unmet consumer demand. Through this effort, DMI, NMPF and IDFA will identify best practices and opportunities for innovation in production, processing and marketing of milk and milk products.

Currently, about 30 percent of U.S. consumers buy products based on health and sustainability attributes, according to the Natural Marketing Institute. This rapidly-growing consumer segment today accounts for some $227 billion in purchasing power. Recent surveys indicate that 85 percent of consumer product companies have sustainability policies in place (GMA/Deloitte).

“We are at the dawn of a new era in the food retailing industry,” Gallagher said. “This ground-breaking, checkoff-supported effort will help us tap the ingenuity of our industry and guarantee that we can continue to produce a highly nutritious and sustainable product for American consumers.”

According to Gallagher, the sustainability initiative is designed to “increase dairy sales through innovation opportunities that will promote health and wellness, and preserve natural resources. Our focus will be on identifying sustainable practices that can help the dairy industry meet unmet consumer demand by driving innovation and efficiency in a way that sustains the industry economically, environmentally, and socially.”

As part of the initiative, the three dairy organizations have begun efforts to analyze the carbon footprint of milk, from production on the farm, through processing and retail distribution, to consumption. This analysis will help identify potential innovation opportunities and possible best practices that can reduce energy use and increase sales in the dairy supply chain.

After calculating milk’s carbon footprint, this life cycle analysis will be subject to a peer review process to develop a manuscript for publication in a scientific journal. This process will help ensure that the life cycle analysis accurately and adequately addresses milk’s true carbon footprint in a manner that is credible and transparent. According to Gallagher, this will help produce realistic, real-world opportunities for dairy to increase its sustainable practices.

“The dairy industry’s commitment to sustainability is a win-win-win,” according to Gallagher. “By working together, we can identify opportunities to cut energy costs, produce ‘green’ energy and develop a deeper connection with consumers and retailers.”