Valio’s sustainability bonus programme for dairy farms was updated on 1.5.2023.
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Previously, farms that have taken actions to improve animal welfare have received additional pay for the milk they supply.
Going forward, farms can receive an additional cent per milk litre for farming practices supporting biodiversity, for grazing their cattle and providing access to outdoor activity, and for efforts aiming to reduce the farm’s carbon footprint. With the update, Valio will pay its dairy farmer owners, through cooperatives, nearly 50 million euros annually for sustainability actions.
Previously, the sustainability bonus was two cents per milk litre; now farms can earn an additional cent by combining various actions. For example, the average sized farm of 45 cows currently receives a sustainability bonus of 8,000 euros.
With the programme update, it’s possible to increase the bonus to 12,000 euros. About 80% of the milk produced in Finland is within the sphere of Valio’s sustainability bonus programme.
Starting 1.5.2023, dairy farms can receive an additional cent per milk litre they produce by, e.g., ensuring grazing and year-round outdoor access, by planting biodiversity zones that benefit pollinators, by practicing carbon farming methods, by cultivating multi-species grasses and by using the Carbo® Farm calculator to report the carbon footprint of the milk they produce.
Milk production impacts biodiversity in both negative and positive ways. For example, clearing fields in areas of high natural value and cultivating peatlands reduce biodiversity.
Grazing cows, on the other hand, enhances biodiversity because cattle manure attracts insects, which in turn attract birds. The positive biodiversity impacts of grasslands for grazing can be enhanced by maximising the rotation period of grasses and by using multi-species grasses. Grazing can be used to control invasive alien species that adversely impact the diversity of native species.
For example, nearly a quarter of all the species classified as threatened in Finland live in highly endangered traditional biotopes.
Therefore, the preservation of traditional biotopes through grazing is particularly important. Regenerative farming methods and perennial, multi-species grassland cultivation also enhance biodiversity, improve soil condition and increase carbon sequestration, thus benefiting both the environment and the farmer.
The heifers on the Pietinmäki farm in Mynämäki have been grazing for 50 years in a traditional biotope area along the coast of Mynälahti bay. The area contains traditional biotopes of various ages, the oldest and most valuable of which is an open seashore meadow.
The Pietinmäki farm’s Katja and Henri Hartikainen know that without biodiversity, farming would also cease. By diversifying cultivation and crops, they are more likely to have good yields even in exceptional years.
Valio is owned by ca. 3,700 Finnish dairy farms through cooperatives, and Valio pays all its operating profit to the owners through the cooperatives. ■