Dairy and Deforestation: How to Ensure Sustainable Land Use in the Industry

February 28, 2025 3 min read

Introduction: The Dairy Industry’s Role in Global Deforestation 

Dairy farming is often associated with pastures and grazing lands, but its environmental impact extends far beyond the farm. The industry is one of the major drivers of deforestation, particularly through the production of feed crops like soy and maize, which require vast amounts of land and resources.

As consumers, regulators, and investors demand greater transparency and sustainability, dairy companies must take urgent steps to decouple milk production from deforestation. Sustainable land use is no longer just an environmental responsibility—it is a business necessity.

This article explores how dairy companies can ensure deforestation-free supply chains, adopt regenerative land management practices, and comply with emerging global sustainability regulations.

The Link Between Dairy and Deforestation

1. Feed Production and Land Conversion

  • The dairy industry depends on vast amounts of land for growing cattle feed, particularly soy, corn, and palm-based supplements. 
  • In South America, over 70% of deforestation is linked to agriculture and livestock production, largely driven by feed crop expansion. 
  • The Amazon, Cerrado, and Chaco biomes are among the most threatened ecosystems due to land clearing for animal feed production.

2. Overgrazing and Land Degradation

  • In regions where dairy cows are pasture-fed, poor grazing management can lead to soil degradation, biodiversity loss, and desertification. 
  • Without proper rotational grazing and soil regeneration strategies, grasslands lose their ability to store carbon, exacerbating climate change.

3. Scope 3 Emissions and Deforestation Risk

  • Dairy companies are under pressure to measure and mitigate their Scope 3 emissions, which include deforestation-linked supply chains. 
  • The EU Deforestation-Free Regulation (EUDR) will require companies to prove that their dairy supply chains are free from deforestation. 

Case Study: A 2022 study found that 40% of imported soy meal used in European livestock feed is linked to deforestation risk, highlighting the urgency for dairy companies to address this issue. 

Strategies for Ensuring Sustainable Land Use in Dairy 

1. Transitioning to Deforestation-Free Feed Supply Chains 

Dairy companies must eliminate deforestation from their feed sourcing by: 

  • Sourcing certified deforestation-free soy and maize from sustainable producers. 
  • Investing in alternative feed crops such as locally grown legumes, algae-based proteins, and food industry by-products. 
  • Working with suppliers who comply with the Round Table on Responsible Soy (RTRS) or ProTerra certifications. 

Example: Nestlé has committed to sourcing 100% deforestation-free dairy ingredients by 2025, focusing on sustainable feed production. 

2. Promoting Regenerative Dairy Farming to Restore Landscapes

Dairy farms can reverse land degradation and promote biodiversity by adopting regenerative practices, including: 

  • Rotational grazing – Allows land to recover between grazing periods, reducing soil erosion. 
  • Silvopasture systems – Integrating trees into pastureland enhances biodiversity and carbon sequestration. 
  • Cover cropping and agroforestry – Protects soil while reducing the need for synthetic fertilizers. 

Case Study: Danone is partnering with regenerative dairy farms to increase soil carbon sequestration and promote sustainable grazing. 

3. Leveraging Satellite Monitoring for Land Use Transparency

Technology is revolutionizing deforestation tracking and supply chain monitoring in the dairy industry. 

  • Blockchain technology enables traceability of dairy products, verifying that milk, cheese, and yogurt originate from sustainable sources. 
  • Collaboration with NGOs and third-party auditors provides credibility and verification of sustainability claims. 

Example: FrieslandCampina is using satellite monitoring to ensure its dairy suppliers comply with zero-deforestation commitments. 

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The Business Case for Deforestation-Free Dairy 

Regulatory Compliance and Market Access 

  • Retailers and food brands increasingly require verified sustainable dairy products from their suppliers. 

Consumer and Investor Demand for Sustainable Dairy 

  • 75% of global consumers prefer brands with strong environmental commitments, according to a 2023 survey. 
  • Sustainable finance incentives reward dairy businesses that transition to deforestation-free supply chains. 

Example: Arla Foods is integrating zero-deforestation policies into its supply chain, ensuring long-term market competitiveness. 

Conclusion: Sustainable Land Use is the Future of Dairy 

The dairy industry must transition to deforestation-free, regenerative, and climate-smart land use practices to remain viable in the future. By ensuring sustainable feed sourcing, restoring degraded pastures, and leveraging technology for land monitoring, dairy companies can reduce their environmental footprint while maintaining profitability. 

Sustainable dairy is no longer optional—it’s an industry imperative. 

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