Arla Foods is one of the largest cooperatives in Europe, with shared ownership among 10,319 dairy farmers and an annual production capacity of 13.9 billion kilograms of milk. Arla is active globally, with strong market shares in the UK, Sweden, Germany and Denmark, as well as a presence in the Middle East and North Africa, Sub-Saharan Africa and South East Asia. In addition to its portfolio of dairy products across well known brands Arla, Lurpak, Castello and Puck, subsidiary Arla Ingredients is a major global player in the whey-based ingredients market.

Baseline assessment

Environment

On track

Nutrition

On track

Social inclusion

Started the journey

Summary

Arla publicly discloses detailed commitments across all three dimensions, particularly environment and nutrition. The company has set a number of time-bound targets, including the reduction of scope 1, 2 and 3 GHG emissions, food loss and waste, and plastic use and packaging waste. Furthermore, Arla has a responsible sourcing policy covering palm oil, cocoa and soya, all of which are high-risk commodities in the context of protecting and restoring natural habitats. In the nutrition dimension, Arla has a strategic commitment to improve the accessibility of healthy foods, disclosing programmes to increase its market presence and reach 71.4 million lower income consumers in Bangladesh and Nigeria. The company also publishes corporate policies covering its commitments to both responsible labelling and marketing and food safety. While the company introduced a new plant-based range in 2019, it has not accompanied this with a target to further diversify proteins in its product portfolio. With regard to social inclusion, the company has commitments to prevent and eliminate both child and forced labour, and details how it assesses and monitors compliance with this in both its own operations and supply chain. While Arla has programmes to help smallholder milk producers increase their productivity, the company could improve in the social inclusion dimension by disclosing commitments to protect the land and resource rights of these and similar communities around the world. The company does not commit to paying a living wage within its own operations or supply chain.

Food and Agriculture Benchmark

The Food and Agriculture Benchmark will assess 350 keystone companies on the issues underpinning the food system transformation agenda. The benchmark’s aim is to stimulate companies to apply sustainable business practices throughout their operations as well as use their influence to encourage value chain partners to do the same. WBA has organised the food and agriculture value chain into six sub-sectors. These sub-sectors are also reflected in the methodology framework.

Food and agriculture revenue
EUR 10,527,000,000
(USD 11,784,712,000)
Major subsidiaries
Arla Ingredients
Consumer brands
Arla, Lurpak, Castello, Puck

Value chain sub-sectors

Other benchmarks

The company is also included in the following benchmarks developed by WBA and our Allies. These benchmarks help to deepen our understanding on key issues and industries.