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Dairy processing companies and dairy farmers have joined forces in the Sustainable Dairy Chain partnership to ensure a futureproof and responsible dairy industry. Efforts in this respect are focused on the following topics: outdoor grazing, biodiversity and the environment, a climate-responsible dairy industry, and continuous animal welfare improvement.

Virtually all milk produced in the Netherlands falls into the remit of the Sustainable Dairy Chain. Vreugdenhil offers farmers an outdoor grazing premium and runs a sustainability programme to stimulate and reward our 826 dairy farmers’ sustainability performance. The subjects covered by our sustainability programme contribute towards achieving the goals of the Sustainable Dairy Chain. The sustainability programme is divided into 11 themes and dairy farmers can earn 12 points in total. If a dairy farmer earns a minimum of 5 points, they get a 0.05 cent per point bonus for each 100kg of milk. In 2021, 94.3% of dairy farmers received such a sustainability bonus, compared to 92.1% in 2020. Animal welfare was also an important theme again last year. Additionally, dairy farmers worked on reducing greenhouse gas emissions from their farming activities.

In order to help dairy farmers with their efforts as part of the sustainability programme, we are making various tools available. These tools include the KringloopWijzer, the KoeMonitor and the KalfOK score, which give dairy farmers insight into how they are doing in terms of sustainability and animal welfare. They can, furthermore, turn to our district advisers with questions and whenever they need support. We also have a large network we can draw on for knowledge and to stimulate innovation. As the dairy industry, we are proactively tackling our sustainability challenges. Additionally, we and our dairy farmers continuously critically assess terms of supply to make the arrangements as pragmatic as possible. Every year, we track developments and evaluate the programme together with dairy farmers.

Most of the greenhouse gases in our value chain occur at farms, especially in the form of methane emissions from cows. Since 2020, we have been using the greenhouse gas module in the KringloopWijzer tool from our sustainability programme to track dairy farmers’ total greenhouse gas emissions. All dairy farmers thus gain insight into their farm’s greenhouse gas emissions per kilogramme of milk. We use the data gathered by the KringloopWijzer tool to calculate a farm’s bonus under our sustainability programme. This is how we aim to stimulate greenhouse gas emission reduction at farms.

In 2021, we launched an initial pilot to provide dairy farmers with even more support in reducing greenhouse gases at their farms. Together with an adviser, dairy farmers make a customised plan to further reduce emissions at their farms, such as by reducing energy consumption, generating renewable energy, and reducing emissions from cows. In 2022, we will further scale up this pilot. We expect to see the first results in the data from the KringloopWijzer tool in early 2023. Over the coming year, we will set our target for the reduction of greenhouse gas at farms.

Our sustainability programme also gives dairy farmers a bonus for generating renewable energy. In 2021, 26.9% of our dairy farmers generated at least 50% of the energy they use from renewable sources themselves, compared to 23.2% in 2020. We have, therefore, hit our target of 25%. This increase comes mainly from dairy farmers’ investments in solar panels. In 2022, we will continue to reward dairy farmers for generating energy from renewable sources.

‘If you know where you stand now and where you want to go, you can also direct the steps you need to take’

‘Since 2008, Vreugdenhil has been part of the Sustainable Dairy Supply Chain partnership, in which parties from across the dairy industry are united to work on a futureproof supply chain that produces high-quality food with respect for people, animals, and the environment.’

‘When the partnership was created, the parties set climate targets focused on generating renewable energy and reducing energy consumption at farms. Since 2020, reducing greenhouse gas emissions has been a spearhead of our sustainability programme. We reward dairy farmers for reducing greenhouse gas emissions. In our new strategy, we will again target the reduction of greenhouse gas emissions at our dairy farmers’ farms. In order to give our dairy farmers insight into their total greenhouse gas emissions per kilogramme of milk, we use the climate module in the KringloopWijzer tool.

‘We are happy to help dairy farmers: by creating insight and by sharing new knowledge. Within the Sustainable Dairy Supply Chain partnership, we develop new knowledge and tools and engage with stakeholders. In addition, we report on the dairy industry and the challenges that dairy farmers face. After all, if you know where you stand now and where you want to go, you can also direct the steps you need to take.’

‘There are various ways to reduce greenhouse gas emissions at farms. Seeing as every dairy farm we work with is different, this requires customisation and the approach is different for each farm. Factors to consider include the type of stables, where they store manure, how they manure the land, and what they feed their cows. Dairy farmers decide for themselves how to tackle this issue. Measures to reduce emissions may have an adverse effect on other sustainability efforts. Together with our dairy farmers, we seek to strike the right balance between these factors.

‘’In order to support dairy farmers even more in lowering greenhouse gas emissions at their farms, Vreugdenhil launched a pilot last year. This pilot sees a number of dairy farmers partner with an adviser to make a customised plan for their farm. For each individual farm, we look at strengths and weaknesses and identify possible investments and concrete measures that dairy farmers can take to further reduce emissions.

24 hours a day, 7 days a week, a dairy farmer puts great care into ensuring his or her animals can grow old healthily. In 2021, this resulted in our dairy farmers' cows living 6 years and 26 days on average, which is 34 days longer than in 2020. This result is above the Dutch national average of 6 years and 13 days, meaning that we again achieved our objective this year.

In order to continuously improve cow welfare, our dairy farmers have been using the KoeKompas tool for several years now. This is a tool that helps them track animal health and welfare. Together with a vet, the dairy farmer looks at different aspects that affect cow health and welfare, so as to identify strengths and points for improvement. This gives dairy farmers greater insight into potential risks at their farm, so that they can then take preventive measures.

Improving calf care is also part of our sustainability programme. Dairy farmers use the KalfOK score to monitor calf welfare. Based on 12 indicators, cattle farmers gain insight into the quality of calf care and possible points for improvement in their calf rearing practices.

‘Our focus is entirely on the cows’

‘In 1994, my husband took over this dairy farm, which was his family business. In 2009, he passed away and I continued the business. Meanwhile, I have remarried and I now run this dairy farm together with my new husband Evert. We have over 50 cows and we have always maintained the same way of working. That’s easy, with little automation, and lots of attention for the animals. We believe that many of the machines that exist today are not necessary, such as feed mixers and manure robots. Not using these machines keeps our costs and greenhouse gas emissions down.’ 

‘Milk production from our cows is above average; they produce almost 500,000kg of milk in total per year. The cows eat a lot of grass and are not fed any corn. They do get some sugar beet pulp, because that boosts milk production. All the manure they produce is used on our own land, meaning that we don’t have to dispose of manure and buy only small amounts of artificial fertilizer. This, too, helps keep greenhouse gas emissions down.’ 

‘Our focus is entirely on the cows. Our oldest cow is 13 years old. In our kitchen, we have put up all the certificates for cows who have produced more than 100,000 litres of milk and, therefore, achieved high production levels! Evert has a background in agricultural care, where he helped many farmers with their milking practices, but also in cattle hoof care. So this is also something we focus on a lot. By trimming properly, you can prevent infectious cow foot diseases as much as possible, which can help ensure that cows live longer. 

‘My job is to take care of the young calves: by feeding them well while they’re young, we hope to make them live longer. When a cow has difficulty going in calf, you need a lot of patience. We keep trying for a long time until the cow is in calf.

In 2021, our outdoor grazing rate was 91.0%. This is a slight increase on 2020 (90.6%). This means that our dairy farmers have more than met the national target of 81.2% laid down in the Outdoor Grazing covenant from 2012. For us, too, the outdoor grazing rate is well above the Dutch average of 84.0%. The bonus for outdoor grazing has been high for several years now, making it attractive for farmers to switch to outdoor grazing.

The outdoor grazing rate is calculated by dividing the number of dairy farms with partial and full outdoor grazing by the total number of dairy farms. By full outdoor grazing, we mean that dairy cows graze outdoors at least 6 hours a day and at least 120 days a year (or at least 720 hours a year, during a minimum of 120 days). For partial outdoor grazing, at least 25% of cows have to graze outdoors for at least 120 days a year.

Outdoor grazing percentages per year

Due to ageing in the agricultural sector, continuity of the dairy industry is a focus point. We are seeing that the younger generations are not always willing or able to take over dairy farms.

There is increasing pressure on space and the environment. Changing government policy and public opinion are creating uncertainty over the future of dairy farms, such as regarding the land used, the reduction of livestock numbers, and regulation around nitrogen and phosphor. We maintain an ongoing dialogue with our dairy farmers to monitor these developments and support dairy farmers where necessary.

Our dairy farmers live with and for nature. When it comes to our cows’ feed, dairy farmers largely depend on the climate and the fertility of the soil on their land. They want to keep this at optimum levels for the long term, which is why sustainable management of the land is so important.

More and more dairy farmers are getting serious about agricultural nature management. In 2021, the number of dairy farmers that took additional measures to boost biodiversity on their land rose further to 69.5%. This is a slight increase on 2020 (65.1%). Examples of measures include bird management, ditch bank management, and the creation or protection of other landscape elements. Under our sustainability programme, dairy farmers can earn a bonus for their biodiversity efforts.

In 2022, we want to further increase our commitment to biodiversity and provide more support in this area. Our objective for 2024 is for 75% of our dairy farmers to take measures to increase biodiversity.

'We work together with enterprising farmers who want to shape sustainable dairy farming together with us'

‘Our most important raw material is milk. The dairy farming sector has come under great pressure from society and the government. Luckily, many people are seeing the importance of nutritious dairy products, but at the same time we also face challenges around biodiversity, land use, climate, and animal welfare. This means that working on a sustainable dairy farming sector is key in continuing to bring our customers the best of milk. We work together with enterprising farmers who want to shape sustainable dairy farming together with us.'

‘We have been working on sustainability together with dairy farmers through our sustainability programme for several years now. We support them by offering tools to gain insight into issues such as animal welfare, biodiversity, and greenhouse gas emissions. Over the past years, participation in our sustainability programme among dairy farmers has risen from 75% to 94%, which goes to show that sustainability awareness is growing.’

‘Sustainability calls for a supply chain-wide approach, which is why we are working together within the dairy industry, both on a domestic scale through the Sustainable Dairy Chain initiative and internationally in the Sustainable Dairy Partnership. In order to tie in with the goals of these partnerships and the developments around us, our sustainability programme is constantly evolving. This is also reflected in our strategy. Over the coming years, the focus will be on cutting emissions at our dairy farmers’ farms. Like in many other industries, sustainability is a key topic in dairy farming, and we are taking our responsibility and doing our bit.’

‘One of the top 3 risks identified in the World Economic Forum’s Global Risks Report is loss of biodiversity. With the amount of land that our dairy farmers use, we want to make a positive impact in this area. Besides rewarding dairy farmers for their efforts to increase biodiversity, we continuously liaise with our dairy farmers to identify opportunities and challenges, so that we can take steps together wherever possible. Together, we are working on the continuity of our industry.’