Barry Callebaut and Arla Foods have entered a three-year partnership to reduce emissions from dairy used in chocolate and food ingredients, beginning with skimmed milk powder sourced from the UK. This marks the first time Barry Callebaut has prioritized on-farm emissions reduction within a dairy supply chain collaboration, reinforcing its commitment to the Net Zero initiative.
The partnership requires Arla to deliver annual farm-level carbon footprint data linked to the volume of dairy supplied. This data will enhance visibility into Scope 3 emissions—those originating from supply chains—and help identify strategies to accelerate emissions reductions across shared farms. The collaboration operates under Arla’s Farm Ahead Customer Partnership, a program that connects dairy purchasers with farm-level sustainability data and emissions-reduction initiatives.
Dairy represents a central focus for Barry Callebaut’s efforts to shrink its value chain’s carbon impact. The company states this initiative will move beyond emissions measurement to actively implement decarbonization measures at the farm level. Tilmann Silber, head of Net Zero at Barry Callebaut, said: “Decarbonising dairy is essential to reducing our carbon footprint and this partnership is a sign of our commitment to driving meaningful progress on our Net Zero journey.”
Collaboration to boost dairy supply chain transparency
Silber continued: “By working closely with partners like Arla, we can increase transparency in our dairy supply chain and accelerate the development of scalable decarbonization initiatives that support our Scope 3 reduction targets and contribute to ongoing sustainability efforts in the food chain.”
A key component of the agreement involves financial incentives for farmers adopting emissions-cutting practices. The program integrates farm-level carbon tracking with established greenhouse gas and dairy carbon methodologies, creating a stronger foundation for supporting reductions.
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Gabriela Aramayo, Barry Callebaut’s lead for dairy responsible sourcing, said: “Dairy is one of the most complex categories to reduce carbon footprint and meaningful progress requires close collaboration across the entire value chain.”
She added: “What makes this initiative particularly important is the ability to connect climate ambition with concrete action at farm level through long term engagement with suppliers and farmers.”
Farmers and data drive emissions-reduction progress
Arla confirmed the partnership will also support the actions of its farmer owners while providing Barry Callebaut with data for its reporting requirements. Catherine Konge Varming, senior director of sustainable innovation and development at Arla, said: “We are pleased to work closely together with Barry Callebaut on our shared goal to reduce emissions from dairy. Through the partnership, we can further support the actions our farmer owners are taking to produce high-quality dairy as efficiently while providing valuable data for Barry Callebaut’s reporting purposes.”
This dairy-specific project forms part of Barry Callebaut’s broader efforts to cut emissions across its supply chain and deliver lower-carbon options to clients. The partnership aligns with the company’s Net Zero Chocolate Solutions, which assist customers in minimizing the overall footprint of cocoa and chocolate products through targeted supply chain interventions. By linking customer demand, supplier cooperation, farm-level data, and financial rewards, the two firms are positioning this model as adaptable to other supply chains. Neither company has revealed the partnership’s specific emissions targets or the initial dairy volume covered.
Farmers participating in the program will receive payments for implementing emissions-reducing practices. The use of verified carbon footprint data—rather than estimates, could improve tracking accuracy. Arla’s Farm Ahead program provides a framework for sharing sustainability data, ensuring transparency between buyers and producers. The partnership’s success hinges on consistent data collection and farmer participation, factors that will determine whether this model can be replicated elsewhere.
