Co-op has announced a new £820,000 (US$1 million) sustainability initiative to support British farmers across beef, lamb and dairy sectors, which will directly reward their efforts in reducing greenhouse gas (GHG) emissions. 

The funding will support two new sustainability projects, enabling participating farmers to access sustainability payments above the price they are already paid for their products.

The first project will focus on the dairy sector. Co-op will partner with the Soil Association Exchange to support the 140 farmers in its Dairy Farming Group in reducing their carbon footprint and begin to baseline key nature indicators like biodiversity and soil health.

Sustainability payments will be rewarded to the farms as part of the project, while farmers can choose an action plan that works for them, with support from advisors. This could include guidance on cutting fertilizer use, increasing fuel efficiency and investing in solar energy.

The second project, Co-op’s Beef Sustainability Scheme, will reward farmers for adopting on-farm sustainable practices and will be open to the group’s farming group members. 

The scheme is being launched after a successful two-year pilot. It will be extended to 15% of the retailer’s beef supply chain this year and include lamb farmers for the first time. 

Reducing emissions

More than 100,000 metric tons of carbon are expected to be saved under the program over a five-year period as Co-op grows the beef and lamb supply covered by the scheme. Farmers will reduce their impact through a range of actions, from breeding more efficient animals to improving forage quality, says the retailer.

Matt Hood, managing director at Co-op, says: “We know British farmers are facing many challenges and have seen firsthand the fear, anxiety and anger they are currently feeling. Backing UK agriculture is more important than ever.” 

“At Co-op, this means investing hundreds of millions every year to be one of the few UK retailers to be totally 100% British across meat, poultry and dairy throughout our own supply chain and committing support for farmers addressing the growing need for sustainability and climate resilience.”

The schemes are part of Co-op’s broader strategy to reduce its environmental impact and support its suppliers in doing the same. According to the retailer, it was the first UK grocer to source 100% of all its fresh and frozen chicken, pork, beef and lamb from UK farms, including when used as an ingredient. It only sells British free-range eggs, milk and cream. 

Tom Bramall, dairy farmer and chair of the Co-op Dairy Group, comments that during “these uncertain times,” it is essential for the industry to work together across the whole supply chain.

“Farmers like me want to play our part when it comes to sustainability, but we need support. It’s fantastic to see Co-op directly rewarding farmers and recognize the positive role we play in addressing the issues around climate change. I appreciate the significant investment this is for Co-op in us and look forward to working in partnership with them over the coming years,” he adds.

The UK has a target under the Climate Change Act to be net zero by 2050, with farming responsible for around 12% of total GHG emissions. However, in 2019, the National Farmers’ unio set its own target for England and Wales to reach net zero by 2040. 

Many farmers have developed more efficient and sustainable production methods in recent years to make progress toward the goal. Despite this, last year, the NFU said its target would be “tough to hit,” citing limited government investment as hampering its efforts in reaching the goal.