Low-Carbon Dairy Farming: Practical Solutions for Reducing Scope 3 Emissions

Introduction: Why Scope 3 Emissions Matter in Dairy 

Dairy farming plays a crucial role in the global food system.  However, it also carries a significant carbon footprint, with Scope 3 emissions being the most challenging to address. While Scope 1 and 2 emissions come from direct operations like farm energy use and transportation, Scope 3 emissions, which include everything from feed production to milk distribution, can account for up to 90% of a dairy company’s total greenhouse gas (GHG) emissions. 

With regulations such as the EU Corporate Sustainability Reporting Directive (CSRD) and the Science Based Targets initiative (SBTi) FLAG framework, dairy businesses must take urgent action to measure, manage, and mitigate their Scope 3 emissions. 

This article explores practical, scalable strategies to reduce Scope 3 emissions in dairy farming, ensuring compliance with sustainability standards while enhancing efficiency and profitability. 

Breaking Down Scope 3 Emissions in Dairy 

Scope 3 emissions cover the entire dairy supply chain and include: 

1. Feed production (50-60%). Fertilizer use, deforestation, and land conversion for growing cattle feed contribute heavily to emissions, particularly through nitrous oxide release, loss of soil carbon, and supply chains linked to imported soy or maize.

2. Enteric methane from cows (30–40%). Methane from cow digestion is a major driver of dairy’s carbon footprint, as it’s produced during rumination and released through burping.

3. Manure management (10–15%). Improper handling leads to methane and nitrous oxide emissions, particularly when manure is stored in anaerobic conditions or applied inefficiently.

4. Processing, packaging, and transport (10–20%). Energy-intensive dairy processing and cold-chain logistics add to emissions, especially in systems relying on fossil fuels and long-distance refrigerated transport.

To achieve low-carbon dairy farming, companies must tackle each of these areas with innovative and data-driven solutions. 

Five Key Strategies to Reduce Scope 3 Emissions in Dairy

1. Sustainable Feed Production and Sourcing

Reducing emissions from feed production is one of the most effective ways to lower Scope 3 emissions. 

• Sourcing deforestation-free feed – Shifting from soy grown on deforested land to regenerative feed sources can reduce emissions. 

• Using alternative feeds – Incorporating legumes, oilseeds, and by-products from food processing into dairy diets reduces dependency on high-carbon feed crops. 

• Improving nitrogen efficiency – Reducing fertilizer use through precision nutrient application and organic soil management lowers nitrous oxide emissions. 

Case Study: Arla Foods is working with farmers across Europe to implement low-carbon feed strategies, aiming to reduce Scope 3 feed emissions by 30% by 2030. 

2. Reducing Enteric Methane with Feed Additives and Genetics

Methane from enteric fermentation accounts for the largest share of on-farm emissions. Several promising solutions are emerging: 

• Feed additives such as Bovaer (3-NOP) – Proven to reduce methane emissions by 20-30% without affecting milk production. 

• Seaweed supplements (Asparagopsis taxiformis) – Early trials show methane reductions of up to 80%, though scaling remains a challenge. 

• Selective breeding for low-methane cows – Genetic selection programs focus on breeding cows that naturally emit less methane per liter of milk. 

Example: New Zealand’s dairy industry has invested in genetic methane reduction programs, targeting a 20% cut in enteric methane by 2030.

3. Manure Management and Biogas Solutions

Dairy farms can capture methane from manure and convert it into useful energy through: 

• Anaerobic digesters – Transform manure into biogas, which can replace fossil fuels and reduce manure methane emissions by 50-80%. 

• Manure acidification – Reducing the pH of stored manure limits methane production. 

• Solid-liquid separation – Removing solids from liquid manure reduces the formation of methane. 

Case Study: California’s Dairy Digester Research and Development Program has helped farms install over 100 digesters, cutting 1.9 million metric tons of CO₂-equivalent emissions annually. 

 4. Decarbonizing Dairy Processing and Logistics

Scope 3 emissions continue beyond the farm—processing, packaging, and transportation also contribute to dairy’s carbon intensity. 

• Electrifying milk transport – Switching to biofuels or electric trucks cuts transportation emissions. 

• Renewable energy for dairy processing – Solar, wind, and biogas-powered plants lower emissions from pasteurization and cooling. 

• Sustainable packaging – Using recyclable, plant-based, or lightweight materials reduces dairy’s carbon footprint. 

Example: Nestlé has committed to 100% renewable electricity across its dairy processing facilities by 2025, reducing Scope 2 and 3 emissions.

5. Carbon Insetting and Regenerative Dairy Practices

Unlike carbon offsetting, carbon insetting focuses on reducing emissions within the supply chain, directly benefiting dairy farmers. 

• Investing in regenerative agriculture – Restoring soil health and sequestering carbon on dairy farms. 

• Supporting on-farm afforestation – Planting trees to absorb CO₂ emissions from dairy production. 

• Incentivizing emissions reductions – Providing financial rewards for farmers who adopt sustainable practices. 

Case Study: FrieslandCampina has developed a carbon-insetting framework, helping dairy farmers earn incentives for emissions reductions while strengthening supply chain sustainability.