TODAY’S STUDY: EMISSIONS ON THE FARM

Full disclosure: Consuming dairy products gives NewEnergyNews gas. This could potentially worsen local greenhouse gas production significantly (estimated) and add further blame to a dairy industry that is already among the top ten drivers of global climate change. But NewEnergyNews, deeply committed to fighting climate change in every way it can, has long refrained from the consumption of dairy, thereby benefiting both the world and its immediate social companionship.

It is therefore especially pleasing to discover, in the report highlighted below, that the dairy industry itself is now joining the fight against climate change. While the dairy industry does not endorse abstinence and seems unconcerned with the odiferousness of the problem, it does offer some constructive ideas.

Now if only the beef industry would turn away from football games and the charcoal grill long enough to take an interest in the fate of the world...

U.S. Dairy Sustainability Commitment Progress Report
December 2010 (Innovation Center for U.S. Dairy)

Scope

This is the first sustainability progress report published by the Innovation Center for U.S. Dairy to summarize the priorities and progress of the U.S. Dairy Sustainability Commitment, launched in 2007.

The information in this report covers the period from 2007 through August 31, 2010, and focuses primarily on greenhouse gas (GHG) emissions and energy impacts — the first challenges to be addressed through this industrywide effort.

The economic data presented is from the years 2007-2009 and comes from information resources at national dairy organizations and government agencies. The GHG data is from the GHG life cycle assessment (LCA) for fluid milk conducted by the University of Arkansas using 2007-2008 U.S. industry data. The GHG LCA data has been peer- reviewed by third-party experts and findings have been submitted to peer reviewed journals for publication in 2011.

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The GHG reduction project data is for the period from 2007 through August 2010.

Where relevant, data presented in this report may serve as a baseline for future reports.

Sustainability in the U.S. Dairy Industry

For the dairy industry, sustainability isn’t new. Innovation and efficiencies in milk production, processing, packaging and transportation have all contributed to our ability to do more with less, to be profitable and to provide wholesome dairy products to feed a growing population.

We realize, however, that we must go further. Many experts believe that by 2050, the world’s population will increase by about a third — from six billion to nine billion people — while our food consumption will double. Dairy plays a key role in a healthy diet for this growing population. Health experts around the world encourage daily consumption of dairy foods such as milk, cheese and yogurt to promote good health and help prevent disease.

Like other businesses, however, production of milk and dairy products has an effect on earth’s fragile ecosystems and regenerative capacities. Pressure is increasing to minimize that impact. Retailers, regulators and investors are requesting information about sustainability performance.

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Building on Our Heritage of Stewardship

Meanwhile, the general population is changing how and what they buy, as well as how they dispose of products, in order to lead a more environmentally friendly lifestyle. Research shows that many frequent milk users — people who drink milk at least once per day — are concerned with their personal impact on the environment, and may even increase their consumption of milk if they believe it is not only healthy, affordable and good-tasting, but also responsibly produced.

Thus, improving our sustainability performance presents a prime business opportunity in the 21st century for dairy. It can lead to increased business value and competitive advantage through cost savings, innovative business models and new markets. By preparing for the challenges of population growth and intensifying competition for natural resources, the dairy industry will be positioned to recognize new business opportunities and help to secure the availability of healthy, affordable, low-impact foods for future generations.

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Dairy’s Economic, Environmental and Social Impacts

For the dairy industry, sustainability means providing nutritious dairy products in a way that makes our industry, the earth and its people economically, environmentally and socially better — now and for future generations. The following table shows ways we are beginning to measure the “triple bottom line” impact of our industry.

Economic

The U.S. dairy industry is a vital part of our nation’s food system and contributes thousands of jobs, income and vitality to communities across the country. Dairy is the fourth-largest agricultural commodity in the United States, at 8.6% of total receipts. The United States is the largest dairy producer in the world, producing 189.9 billion pounds of cow milk, followed by India with 98.8 billion pounds and China with 80.3 billion pounds. Dairies create a ripple effect on both the agricultural economy and the economic well-being of rural America. Dairy farmers pump an estimated $2.50 into their local economies for every dollar they spend. Milk, cultured products, cheese and frozen desserts are produced and marketed by more than 530 manufacturing plants and marketing institutes and their suppliers. This had an estimated value of $110 billion in 2008.

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Environmental

Dairy farms and businesses have a heritage of advancing their operations in a way that makes good economic and environmental sense. According to Cornell University, the dairy industry has already reduced its carbon footprint by more than 60 percent between 1944 and 2007 due to production efficiencies, improved cow nutrition and comfort, nutrition management and other improvements. U.S. dairy GHG emissions are approximately 2 percent of total U.S. emissions. The carbon footprint of a gallon of milk — from farm to table — is 17.6 pounds of carbon dioxide equivalents (CO2e) per gallon of milk consumed (or 2.05 kg CO2e per kg of milk consumed). Milk performed better than other beverages in the new Nutrient Density to Climate Impact (NDCI) Index, which establishes the relation of beverage nutrient density to climate impact.

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Social

The dairy food group (milk, cheese and yogurt) is a substantial contributor of many nutrients in the U.S. diet that are important for good health, including calcium, vitamin D, potassium, phosphorus, magnesium, zinc, protein, vitamin A, vitamin B12 and riboflavin. At about 25 cents a glass, milk is a nutritional bargain. Milk is Americans’ No. 1 food source of calcium, potassium and vitamin D in the diet — nutrients that many Americans fall short on each day. For example, only 36 percent of Americans meet current calcium recommendations, 31 percent meet current vitamin D recommendations and less than 5 percent meet current potassium recommendations. Higher dairy intake as part of a healthy diet leads to higher nutrient intake, better diet quality and bone health. It also may help maintain a healthy weight and has been associated with reduced risk of several diseases and conditions, including osteoporosis, hypertension, colon cancer, metabolic syndrome and type 2 diabetes. A 2004 study reported that if adult Americans increased their intake of dairy foods to three to four servings a day, more than $25 billion could be saved in unnecessary health care costs after just one year.

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The U.S. Dairy Sustainability Commitment

In 2007, leaders from across the dairy industry came together to chart a bold path forward. Our initiative began with a definition of sustainability for our industry: To provide consumers with the nutritious dairy products they want in a way that makes our industry, the earth and its people economically, environmentally and socially better — now and for future generations. The following year, participants at the inaugural Sustainability Summit drafted and committed to a vision and set of guiding principles. This provides us with the framework for pursuing a sustainability strategy that builds on dairy’s heritage and establishes a new way of working together pre-competitively.

Sustainability Vision

The changing social, environmental and economic landscape of our planet, nation and industry calls for a unified response from all participants in the dairy industry. With both challenges and opportunities in mind, we are committed to working together to achieve a positive and lasting contribution; therefore: “We commit to being leaders in sustainability, ensuring the health and well-being of our planet, communities, consumers and the industry.”

Guiding Principles

The U.S. dairy industry is committed to:
 Recognizing and appreciating all members in the value chain from farm to table
 Working collaboratively with all stakeholders, consistent with the vision
 Taking responsibility for our environmental impacts and celebrating our positive contributions to the planet
 Ensuring economic fairness across the value chain
 Preserving and enhancing the health and wellness of all people
 Utilizing both sound science and a transparent process to foster continuous improvement

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Environmental Research

As with our decades-long approach to nutrition research, the dairy industry values science as the foundation of our commitment to sustainability. Peer-reviewed scientific research grounds our decisions, informs the development of best management practices and helps establish goals and measure accomplishments for every segment of the dairy value chain. To ensure the credibility and accuracy of our research, the principle of scientific integrity serves as the base for each commissioned research study. We pledge to:

 Pursue knowledge through scientific discovery, subject to the highest ethical standards in scientific and clinical research, to advance knowledge of the role of dairy in human nutrition and health, our impact on the environment and our role in the global marketplace on behalf of the dairy industry of America
 Adhere rigorously to accepted scientific principles, methods and conduct to guide discovery and study design, including peer review by qualified reviewers
 Apply a science-based approach to the development of all dairy labeling and advertising claims, and adhere to all applicable labeling and advertising laws and regulations

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Life Cycle Approach

A life cycle assessment (LCA) studies the entire life cycle of a product, starting with raw materials extracted from nature and ending after consumer use and disposal. An LCA:

 Calculates an accurate baseline for measuring environmental and social impact
 Provides a system-level view from which to identify opportunities for innovation and improvement
 Scientifically informs decisions on future options
 Provides a common benchmark and language

The following LCAs are under way to provide insight into the major environmental impacts — such as carbon, water, waste, land use and biodiversity — for the production and consumption of dairy products…GHG LCA for Fluid Milk (Carbon Footprint)…Comprehensive LCA for Fluid Milk…Comprehensive LCA for Cheese…Comprehensive Processing and Packaging LCA for Fluid Milk…