Farm, factory and fork: 3 ways regenerative farming benefits the dairy supply chain

The clock is ticking on emissions reporting. With new climate disclosure laws coming into effect in the EU, Australia and U.S. states like California, companies will be required to report Scope 3 emissions, including those embedded in agricultural supply chains like dairy. Scope 3 emissions – the indirect emissions that occur both up and downstream in the value chain – are particularly challenging to address, as they’re typically hard to control, measure and influence. But as transparency becomes non-negotiable across the dairy value chain, all eyes are on the farm – the source of most greenhouse gas emissions.

H Nie et al., Towards decarbonizing the supply chain of dairy industry: current practice and emerging strategies, Carbon Neutrality, 4(8), 2025.

Change is possible, however.

So, how could scaling regenerative agriculture make a difference? This farm-first movement prioritises improving soil health, biodiversity and water quality to help reduce the dairy industry’s environmental footprint. But the benefits of regenerative agriculture go far beyond farmers, having a positive impact on manufacturers and consumers, too.

In this blog, we dig deep into how regenerative farming benefits stakeholders across the dairy supply chain – from farm, to factory, to fork.

What is regenerative dairy farming?

Regenerative dairy farming starts with healthy soil – the foundation of resilient and productive farmland. By combining time-tested practices with modern approaches, regenerative dairy farming enhances soil life, supports biodiversity, and reduces farming’s environmental impact, restoring the land rather than depleting it. Read more about how it works and our approach to scaling regenerative agriculture here.

1. How regenerative farming benefits the farm

Regenerative agriculture helps farmers meet goals and increase yields

Conventional farming methods often rely heavily on chemical inputs such as fertilisers and pesticides, which means the full potential of the soil isn’t always realised. Modern practices have sometimes reduced soil biodiversity and its natural capacity to store carbon.

However, regenerative agriculture can help to reverse some of this damage. By enhancing soils and biodiversity, these sustainable dairy practices have been shown to reduce the environmental impact of conventional farming.

E Rehberger et al., What climate and environmental benefits of regenerative agriculture practices? an evidence review. Environ. Res. Commun., 5, 2023



It works by improving the natural ecosystems and maintaining carbon sinks like trees and healthy soil. This helps regulate the atmosphere – supporting carbon and nitrogen cycles while mitigating on-farm emissions. Cows on the farm benefit from healthier soil, too, with better access to high-quality nutrients, which can have a knock-on effect on yields.

Soil Association, The benefits of feeding cows grass over grains, 2021.

Beyond meeting sustainability goals, regenerative dairy farming could also provide farmers with commercial gains. A landmark study conducted by the European Alliance for Regenerative Agriculture (EARA) found that a holistic approach could not only support climate resilience and food security but also improve economic returns for farmers and the food supply chain.

EARA, Farmer-led Research on Europe’s Full Productivity, 2025.



What’s more, the research found that switching to regenerative agriculture in Europe could mitigate 141.3 million metric tonnes of CO2 per year, which equates to around 84% of the net greenhouse gas emissions within the EU agricultural sector. Even better – EARA predicted that after three to seven years of transition, the sector could become nature and climate positive. All positive steps for the development of more sustainable nutrition.

Read about how FrieslandCampina’s Foqus planet initiative rewards efforts to boost biodiversity through regenerative agriculture.

 

Explore the initiative

2. How regenerative farming benefits manufacturers

Regenerative agriculture builds supply chain resilience and transparency

Regenerative agriculture is not just for farmers – these sustainable practices hold important benefits for product manufacturers, too. Building more resilient ecosystems reduces the risk of crop failures – meaning less supply chain disruptions for brands. In fact, with agricultural yields often vulnerable to factors like climate change, pests and diseases, improving supply chain reliability can even help stabilise the prices of key commodities – and even potentially reduce downstream costs for manufacturers.

Prioritising regenerative agriculture in their supply chains is a smart move for manufacturers to boost consumer trust. After all, shoppers want to know where their products come from – as many as 58% say they want clear information on ingredients and sourcing when it comes to their food and drink.

Innova Market Insights, Now & Next in Clean Label – Global report, 2025



To help brands better understand the impact of their supply chain, many farmers are adopting improved monitoring, data collection and impact reporting to track biodiversity progress and environmental performance, enhancing visibility and traceability. This means that dairy formulators can put strong data behind their regenerative agriculture claims – demonstrating commitment to responsible sourcing. In fact, with the new regulatory disclosure frameworks coming into play requiring traceable scope 3 emissions data, regenerative dairy farming gives them an edge in compliance, too.

Discover what we’re doing to track our sustainability progress and create a more sustainable dairy industry – including measuring the impact of regenerative agriculture on our member farms.

 

Read more

3. How regenerative farming benefits consumers

Regenerative agriculture supports our personal sustainability goals

Regenerative agriculture isn’t just about the benefits for farmers – it also directly responds to consumers’ growing desire for products that are in harmony with nature. In fact, nearly 50% of consumers are motivated to buy products that include clear, direct environmental benefits.

Mintel, Global Outlook on Sustainability: A Consumer Study 2024-25



And many consumers aim to understand a product’s impact and are carefully looking at labels before they buy to see which brands they can trust. Brands, in turn, are responding – the number of food and beverage launches with an ethical or environmental claim rose by nearly 14% between 2018 and 2023, with dairy as the leading category.

Innova Market Insights, Sustainability trends: global market overview, 2024.

But with greenwashing a growing concern, claims must be proven to win a place in consumers’ shopping carts. Consumers are wary of unsubstantiated sustainability claims and understandably want more science, substance and stats behind their favourite products. And, as the role of farming practices in shaping a product’s environmental impact comes under greater scrutiny, the industry’s ability to communicate farm-based benefits credibly will rely on clearer, more consistent regulatory guidelines. This will help ensure that any claims linked to regenerative approaches are backed by transparent, science-based evidence rather than marketing alone.

Regenerative dairy farming can help tell a compelling story of responsible sourcing – one that aligns closely with consumers’ personal sustainability goals. Farms that are already adopting regenerative practices – and crucially, measuring the outcomes of those practices – will be far better prepared as expectations around environmental proof points continue to rise. With a growing share of consumers willing to pay more for more sustainable food – 44% say they are willing to pay a premium for food that supports the environmentviii – farms that can demonstrate improvements in areas such as soil health or biodiversity will be in a stronger position to help brands make credible, evidence-based claims. As regulatory frameworks evolve, this combination of regenerative action and robust measurement will not only support clearer communication but also strengthen consumer trust, ensuring that future sustainability claims are both meaningful and measurable.

What do consumers want from nutrition brands when it comes to sustainability? Discover the top consumer trends and how brands can tap into them in our blog.

 

Read more

The future of dairy farming?

The dairy industry, along with other sectors, has realised that we need to look after the ground beneath our feet to reduce our environmental footprint and work towards a more sustainable planet. Regenerative agriculture is an age-old farming concept that has quietly emerged as a possible solution to these challenges, providing a long-term sustainable approach to farming and a means to develop more sustainable nutrition. This holistic approach requires collaboration, investment and an open mind, but it has the potential to have a lasting impact across the dairy supply chain for generations to come.