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Radically Reducing Carbon Emissions in Milk Supply Chain
Situation
As the dairy industry came under increasing pressure to address carbon emissions from milk production, they looked to Blu Skye to help identify the opportunities for reduction of carbon in the industry’s value chain while optimizing business value.
Insights
Though the research had shown that carbon emissions were concentrated in the Milk Production phase of the supply chain, a real, long-term solution could not come from dairy farmers alone. Given the systemic nature of the problem, the key to achieving meaningful greenhouse gas reductions across the dairy value chain was securing broad-based support from the industry. The design of the Summit as a collaborative, industry-wide process ensured that all participants had an ownership stake in its outcome and in the industry’s success.
Results
The “System-In-The-Room” approach opened up opportunities for action that no single player could have contemplated alone, and ensured that the proposed solutions would have industry-wide support. In January 2009, the CEOs of the 30 largest dairy companies committed to an industry-wide carbon reduction goal of 25% by the year 2020. The 30 largest dairy companies also launched twelve carbon-reduction projects that will generate an estimated $250 million annually by the year 2020.
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