2011 U.S. Dairy Sustainability Report Executive Summary

Our Approach
The Innovation Center is leading sustainability efforts in four key areas: research, goals, innovation projects, and measurement and reporting.
2008 – 2009 2010 2011 2012 2013
BEGINNING WITH SCIENCE: LCA research helps us understand the industry’s environmental impacts and prioritize improvement efforts across the dairy value chain.
Greenhouse Gas (GHG) LCA for Fluid Milk – Completed in 2012; findings submitted for publication.
GHG Results: 17.6 lbs. of carbon dioxide equivalents (CO 2
e) per gallon of milk consumed.
Comprehensive LCA for Fluid Milk – Started with focus on water with ongoing study of land use, nutrient cycles and other impacts
On-farm water assessment completed in 2011; findings to be released in 2012.
Processing and Packaging LCA – Completed in 2011; findings to be released in 2012.
Comprehensive LCA for Cheese – Completed for Cheddar, mozzarella and natural
cheese in 2011; with initial GHG results released.
GHG Results: Lbs. CO 2
e per lb. of cheese consumed
Cheddar
8.7
Mozzarella
7.5
Natural Cheese
8.3
SETTING GOALS: We set voluntary industrywide goals and published a roadmap to achieve the first goal: reduce GHG emissions for fluid milk by 25 percent by 2020.
TRANSFORMING RESEARCH INTO RESULTS: Our GHG reduction projects aim to reduce GHG emissions by approximately 11 percent and deliver an estimated $238M in business value across the value chain.
MEASURING AND REPORTING: Research findings contribute to the development of an industrywide framework to measure and report sustainability performance.
CONTRIBUTION OF U.S. DAIRY INDUSTRY TO U.S. GHG EMISSIONS
U.S. GHG Emissions = 7,168 Tg CO 2
e
U.S. Dairy Industry: ~2%
The GHG LCA for Fluid Milk, in conjunction
with other studies, shows that dairy
contributes less than 2 percent of total
U.S. GHG emissions.
Sustainability Measurement and Reporting Framework for U.S. Dairy project launched.
Fall 2011–Summer 2012: Develop guiding principles; identify and define indicators
for initial topics:
Economic: local economic impacts
and product differentiation
Environmental: energy, GHG emissions,
water quantity and quality
Social: working conditions, animal care,
community contributions
Summer: public review of draft
guiding principles and environmental
indicators and metrics.
Winter: public review of social and
economic indicators; update principles
and Framework.
January: Submission of draft Framework
to Innovation Center Board for approval.
Topics for consideration after 2012:
Economic: value across the supply
chain, financials and others
Environmental: waste, biodiversity/
land use, crop production and others
Social: food safety, health and nutrition,
and others
As part of the Framework project, work is under way to identify indicators to measure and report on the social and economic dimensions of the dairy industry.
SOCIAL
The dairy industry is an integral part of our nation’s heritage: from the role that nutritious
dairy products play in our diet to the strong ties with our communities.
> Workforce: One of dairy’s strongest community ties lies in the approximately 900,000
jobs created by our industry. As such, we place a high value on workforce availability
and retention (an industry challenge), safety, training and employee benefits.
> Animal Care: In late 2010, the National Milk Producers Federation started the National
Dairy FARM Program: Farmers Assuring Responsible Management (FARM), a nationwide
verifiable program that addresses animal well-being. At year-end 2011, nearly half of the
nation’s milk supply came from participating producers.
> Community Contributions: Individually and collectively, companies across the industry
actively support charitable hunger relief and food aid efforts, and raise awareness
of healthy lifestyle choices that help combat issues such as malnutrition and obesity.
America’s dairy producers have pledged $250 million over five years to the Fuel Up to
Play 60 program to improve children’s health.
ECONOMIC
Dairy’s supply chain generates economic benefits at the local, regional and national levels
through employment, local tax revenues and purchases of products and services. Every
dollar spent locally by a dairy producer creates a multiplier effect of more than two and a
half times the original dollar spent.
> The United States is the largest producer of cow’s milk in the world, and dairy is the
fourth largest agricultural commodity in the U.S. Dairy’s on-farm revenues are $31.4
billion, contributing 10 percent of total receipts from sales of agricultural commodities.
> Farms and dairy processors operate throughout all 50 states.
9.1 MILLION COWS
ON MORE THAN
53,000 FARMS
PRODUCED
192.8 BILLION
POUNDS OF MILK
1,200
DAIRY PLANTS
PRODUCED A
VARIETY OF DAIRY
PRODUCTS
AMERICANS
SPENT ~6%
OF THEIR
FOOD BUDGETS
ON DAIRY