Danone: Cutting Methane in African Dairy with Procurement

Danone places procurement at the core of its sustainability agenda in African dairy, using sourcing strategies to cut emissions, support farmers and build supply chain resilience. 

As methane remains a major issue across dairy operations, the company is moving beyond farm-level interventions and aligning its procurement systems with broader climate and development targets. 

This means not only sourcing milk sustainably but actively shaping how suppliers operate, how partnerships are built and how value is created across the chain.

Methane emissions from dairy remain a major contributor to global greenhouse gases, with fresh milk alone accounting for around 70% of Danone’s dairy-related emissions.

Danone is responding by building a Dairy Methane Action Plan that begins with procurement strategy – including targeted supplier engagement, emissions data collection and a strong emphasis on adoption of low-emission technology.

The centrepiece of this procurement-led approach is the 2025 agreement with Sistema.bio to roll out biodigesters to 6,500 smallholder farmers by 2030. These systems convert livestock manure into biogas and fertiliser, slashing methane emissions while creating valuable inputs for farm operations. 

The move forms part of Danone’s commitment to integrate low-carbon practices into the supplier base.

Othmane Essaker, a Moroccan dairy farmer supported through the programme, explains the value of this approach: “The biodigester technology... allows us to use the processed liquid as natural fertiliser in our fields dedicated to cereals and legumes or fodder mix, and it has shown extremely positive results.”

By embedding technologies like biodigesters into supplier relationships, Danone ties procurement directly to environmental outcomes. Tools such as the Cool Farm Tool further enable farmers to collect data, track emissions and optimise operations in line with contractual goals.

The result is a sourcing model where environmental performance becomes part of supplier responsibility.

Danone’s target is to cut methane emissions from its fresh milk supply by 30% by 2030. In 2024, it achieved a 25.3% reduction compared to its 2020 baseline, progress that reflects clear alignment between procurement policies and climate action.

Strengthening supply chain infrastructure 

Beyond emission targets, Danone’s procurement model also supports investment in physical and digital infrastructure.

In markets like Nigeria and Morocco, where smallholders are central to milk production, procurement acts as a gateway to broader development. Sourcing contracts increasingly link with supplier development, farmer training and logistics support.

Morocco’s “Hlib Bladi” programme is one example. This initiative improves sourcing consistency by supporting suppliers with technical training, cold-chain investment and digital systems.

Farmers receive training on feed, herd and manure management, while milk collection centres are upgraded with cold storage and digital tracking. These improvements enable Danone to secure higher quality milk and reduce spoilage, while also lifting farmer incomes by 50%.

In Nigeria, Danone maintains its commitment to dairy investment despite economic instability.

The company sees long-term procurement relationships as a way to support both market growth and resilience. This includes helping local suppliers improve milk collection, enhance quality control and integrate digital traceability systems.

Supplier alignment through partnership models

Danone is also extending its procurement approach through strategic partnerships that align supplier operations with global standards.

The company’s MoU with Sistema.bio is one example, but Danone also co-founded the Dairy Methane Action Alliance, which helps coordinate climate action across the dairy sector.

More than 82% of Danone’s dairy suppliers by volume now belong to the Sustainable Dairy Partnership. The initiative aligns procurement with the Science Based Targets initiative and requires suppliers to commit to shared climate goals, report emissions data and improve their practices over time. This creates a shared responsibility for outcomes across the supply chain.

Danone also invests in supplier capacity building, including support for genomic testing to improve herd resilience, optimisation of feed to reduce enteric fermentation, and better manure handling processes. These techniques improve both productivity and environmental performance, all tied back to Danone’s purchasing framework.

Danone’s dairy procurement strategy across Africa shows how sustainability goals and sourcing operations can align.

By linking supplier support to methane reduction, using purchasing power to drive technology adoption and building long-term partnerships around climate goals, Danone sets a procurement-led model for sustainable dairy supply chains.