UK Dairy Industry Carbon Footprint

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1 UK Dairy Industry Carbon Footprint

2 UK Context In the UK, the 2008 Climate Change Act set long-term binding targets to reduce greenhouse gas (GHG) emissions by at least 80% by 2050 (compared with 1990 levels). Running in parallel are short-term targets to reduce emissions by at least 30% by These targets were for the economy as a whole. However, included in the 2008 Act are specific targets for the agriculture sector: farmers and farm related businesses are tasked with reducing GHG emissions by 4.5 MtCO2e (metric tonne carbon dioxide equivalent) by The plan encourages voluntary action but a review will take place in 2012 to determine whether government intervention is necessary. Dairy Roadmap In 2008 the dairy sector, acknowledged as a significant contributor to the agriculture industry s GHG emissions, committed to reducing its carbon footprint with agreement on a range of targets, including water efficiency measures and support of research into new technologies. Progress was reviewed in 2010 and presented in the Dairy Roadmap document, which set dairy farmers further targets for 2015 and 2020, respectively. Targets included are: 20 30% reduction in GHG emissions by 2020 Carbon Footprint Pilot Project As a major retailer of milk and dairy products, Morrisons, via its Farming Programme, continues to invest in projects that can help British dairy farmers achieve these GHG reduction targets. One such pilot project is with Dairy Crest, a major UK-based milk processor, to evaluate the carbon footprint of a section of its dairy farm suppliers. The 105 farms taking part are geographically spread and operate different production systems. Over a four month pilot period to February 2011, farmers submitted data online, or used a paper equivalent, for evaluation. The results were aggregated to show variations between regions and systems, as well as variations between similar farming operations. Dairy farmers encouraged to calculate carbon footprints by % of energy used on dairy farms to be from renewable sources by 2020 The results, assessed through the agri assist Carbon Footprint model and certified to Carbon Trust (PAS2050) standards, are highly positive 2 UK Dairy Industry Carbon Footprint

3 The Results Average emissions of dairy farms in the Morrisons/DCD Carbon Footprint Project were 1.22kg CO2e/litre*. This compares to average emissions in Western Europe of 1.5kg CO2e/litre** and average emissions of global dairy farms of 2.4kg CO2e/litre. In addition, further analysis of the data from the trial revealed a direct link between lower emissions and better farm profitability. Project Results Showing Variation by Region Morrisons DCD Pilot No: CO2e kgs Av litres/cow Av litres/herd Cheshire, Lancashire, Staffordshire ,730 1,701,237 Devon ,767 1,408,645 Hereford, Shropshire, Worcestershire ,021 1,501,110 Gloucestershire, Warwickshire, West Midlands ,849 1,434,579 Derbyshire, Lincolnshire, Nottinghamshire , ,222 Cambridgeshire, Essex, Surrey, Norfolk, Oxfordshire ,437 1,188,062 West Carmarthenshire, Pembrokeshire ,845 3,129,161 East Carmarthenshire, Glamorgan, Monmouth ,193 2,085,306 Dorset, Wiltshire ,632 1,281,714 Somerset ,699 1,394,893 Averages ,023 1,548,525 Project Results Showing Variation by Farms Average Top 15 Bottom 15 CO2e/litre kg 0.98kg 1.51kg Yield/cow/litres 8,023 9,235 6,646 Butterfat % Protein % Litres/farm 1.54m 2.17m 1.27m Calving Index (days) Livestock (cows/ys) Land farmed (ha) Purchased Feed (t) Moist Feed (t) Fertiliser (t) Electricity Savings Variations Low Unit Cost Low High Average 2.12p/u 10.9p/u 5.12p/u High Unit Cost Low High Average 4.64p/u 18.47p/u 9.06p/u Other benefits from benchmarking can be seen in the variations in energy use and cost. The average consumption/farm x rates range (using average of high/low) delivers a difference in total electricity cost/year/farm of 6,444. The range in cost per farm is from 2,950 to 12,671. * Carbon dioxide equivalent per litre ** Report from Food and Agriculture Organisations of the United Nations September

4 CO2e/litre Comparison between Average Yield per Cow vs. CO2e Emissions per litre ,000 4,500 6,000 7,500 9,000 10,500 12,000 Litres/cow Yellow dotted line indicates average 1.22, while the green dotted line indicates average yield/cow at 8,023 litres The tables and graphs on page 3 and above are a snapshot of all data generated by the Carbon Footprint Project. The findings in all key areas were conclusive and positive for the dairy industry: there is a strong relationship between farm efficiency and total emissions. In addition, variations in herd technical performance suggest that, with the application of good practice, dairy farmers can go a long way to helping the wider agricultural industry meet its GHG emission obligations. Renewable Energy One of the goals of the Dairy Roadmap is that 40% of energy used on British dairy farms is from renewable sources by One section of the Carbon Footprint Project looks at renewable energy and an indication of uptake by farmers. The following table summarises current uptake on the farms surveyed. Project Results showing Uptake of Renewable Energy Renewables Installed Considering No: % No: % Wind turbines Photovoltaic Biomass Ground-source heat Anaerobic Digester Biodiesel production 0 4 UK Dairy Industry Carbon Footprint

5 Farmer Feedback Morrisons wanted to know if farmers taking part in the Carbon Footprint Project had found it useful and if they would change the way they farm as a result. Their answers are summarised in the table below. Q&A Did you monitor the carbon footprint of your dairy enterprise before this Morrisons funded initiative? YES: 16.9% NO: 83.1% Did you find the carbon footprint process of interest? YES: 95.4% NO: 4.6% Have you compared your individual farm results with the pilot project summary results? YES: 87.7% NO: 12.3% Would you be prepared to conduct a further carbon footprint review of your dairy enterprise 12 months after the initial pilot project to enable Morrisons/ DCD to monitor footprint change? YES: 89.2% NO: 10.8% Have you made any recent improvements to water recycling or water harvesting from farm buildings? YES: 44.6% NO: 55.4% Have you plans to/or installed any new technologies to enhance your carbon footprint within the last 24 months? Such as: Installed/ or in the process of installing solar panels YES: 21.5% NO: 78.5% Installed/ or in the process of installing wind turbine YES: 10.8% NO: 89.1% Installed a variable speed milk lift pump YES: 26.2% NO: 73.8% Installed a heat recovery or refrigeration systems YES: 47.7% NO: 52.3% Installed a milk vat with ice builder technology YES: 30.8% NO: 69.2% Installed reduced consumption electrical lighting/light sensors YES: % NO: 58.5% Would you be interested in attending a Morrisons Focus Farm meeting in your region? YES: 83.1% NO: 16.9% September

6 Next Steps The results of the survey are very encouraging in the context of building a dairy industry that is both environmentally and economically sustainable. Key Findings The most efficient dairy farms had the lowest GHG emissions The top 15 farms have GHG emissions that are 20% less than the sample average If best practices from farms in the survey were applied in a single operation to all farms, the results suggest a significant reduction in carbon footprint as well as significant improvement in profitability UK GHG targets can be achieved with a simultaneous improvement in profitability More than 90% of participants found the exercise useful and would continue to conduct carbon footprint reviews These results are a snapshot of UK dairy farm performance but offer considerable optimism that the industry is on track to meet Dairy Roadmap targets 6 UK Dairy Industry Carbon Footprint

7 Morrisons and Dairy Crest farmers have agreed to establish a network of Focus Farms where farmers can share ideas, learn about new technologies and take any necessary steps to improve their farm business sustainability.

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