SUPPORTING DAIRY FROM THE GROUND UP
How Ferrero is working with Arla to support progress in reducing Scope 3 emissions.
Dairy is an important ingredient across many Ferrero products. As with much of the agricultural sector, a significant share of greenhouse gas emissions associated with dairy production occurs at farm level. Supporting farmers in adopting farming practices to lower impact on climate and nature is therefore essential to building resilient dairy supply chains and advancing progress on reducing greenhouse gas emissions across our value chain.
To accelerate this work, since January 2025 Ferrero is partnering with Arla through the FarmAhead™ 1 Customer Partnership Program. The collaboration combines farmer incentives, primary farm-level carbon footprint data and innovation to help drive continuous improvement across dairy production.
“Dairy is an important area of our efforts to help build resilient supply chains and progress depends on working closely with farmers and partners across the supply chain. Through our partnership with Arla and the FarmAhead™ Customer Partnership Program, we can directly contribute to supporting farmers. The program also gives us access to primary farm-level data, strengthening our ability to track progress over time.”
Paola Nogales Anaya, Raw & Pack Responsible Sourcing Manager, Ferrero
Through the program, Ferrero contributes to initiatives that:
- provide financial incentives for farmers to adopt new practices.
- increase access to primary farm-level carbon footprint data.
- pilot and scale innovative farming solutions.
- strengthen the integration between sourcing decisions and on-farm activities.
Together, these efforts contribute to improving resilience across the dairy supply chain while strengthening Ferrero's understanding of Scope 3 emissions linked to dairy sourcing.
The partnership forms part of Ferrero's broader dairy sourcing approach and reflects the company’s actions taken for climate and nature by translating long-term commitments into measurable action and progress.
“FarmAhead™ is about supporting farmers as they take the next steps in their journey to reduce their climate impact. By partnering with companies like Ferrero, we can help scale impact more effectively, combining incentives, data and innovation to support progress at farm level.”
Cathrine Konge Varming, Senior Director, Sustainability Innovation & Development at Arla Foods
As part of this journey, Ferrero aims to continue expanding farmer-centric sourcing approaches across its dairy supply chain. By the end of 2027, the company aims to source at least 30% of the volume of its dairy ingredients through dedicated farmer support mechanisms, helping accelerate the adoption of farming practices that reduce impacts on climate and nature.
What is the FarmAhead™ program?
FarmAhead™ is Arla's farmer-focused program for accelerating climate and nature action on dairy farms, designed to support on-farm action through financial incentives, data and innovation. Through the program, participating companies contribute to initiatives that help Arla farmer owners implement practices aimed at reducing emissions and strengthening farm resilience. The program also provides access to robust farm-level data, helping companies better understand and track progress across their dairy supply chains.
Why does farm-level action matter in dairy?
Most emissions associated with dairy occur at farm level, making farmer engagement critical to driving progress. Supporting farmers to adopt improved practices can help reduce the carbon footprint of dairy production while strengthening resilience and improving transparency. Access to primary farm-level data also enables more accurate measurement and tracking of emissions over time, supporting informed decision-making and continuous improvement.
What is Ferrero’s ambition?
This partnership with Arla is one of the first of its kind in the dairy ingredients sector. Ferrero will continue working with dairy suppliers to develop and expand farmer-centric sourcing mechanisms that support reductions in greenhouse gas (GHG) emissions, with a first milestone target to source at least 30% of the volume of its dairy ingredients through such models by the end of 2027. As the company scales these collaborations, it aims to increase the number of farmers who benefit and accelerate the implementation of climate and nature actions across its supply chain.
1 FarmAhead™ is a registered trademark owned by Arla Foods amba.
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