The Sustainable Procurement in Nestlé's Dairy Plan

For food producers, dairy sustainability is as much about strengthening supply chain resilience as it is about environmental responsibility. The sector faces a complex mix of challenges, including emissions, climate pressures, fluctuating milk prices, labour shortages and rising production costs, all while continuing to supply safe, nutritious milk at scale.

Established in 1866, Nestlé is one of the world’s largest food and beverage companies, with a workforce of more than 270,000 people and a portfolio exceeding 2,000 brands—many of which depend on dairy ingredients.

The company has introduced its first Dairy Plan, setting out how it collaborates with 130,000 dairy farmers and more than 200 suppliers. The plan demonstrates how Nestlé connects climate action, farmer livelihoods, animal welfare, nature and product quality, making the case that more sustainable dairy farming can strengthen supply chains, reduce risk and improve resilience to disruption.

Aligned with Nestlé’s broader net zero roadmap, the Dairy Plan focuses on cutting greenhouse gas emissions, advancing regenerative agriculture, supporting farmer incomes, enhancing animal welfare and protecting ecosystems across the dairy value chain.

"The Dairy Plan shows that productivity, quality milk and sustainability are closely connected and can positively reinforce each other. Through our collaborative approach across the dairy value chain, we are working to advance this change,” said Katja Seidenschnur, Nestlé's Head of Sustainability for the Nutrition & Health business. 

“Together with farmers, we are deploying innovative solutions and technologies that help them build resilience to climate change and economic pressures, develop skills to run their farms as businesses and improve their livelihoods. 

“These practices are also supporting Nestlé's long-term access to high-quality milk and milk ingredients – crucial for the production of the nutritious products across our portfolio."

The sustainability challenge behind dairy

Dairy remains one of the largest sources of greenhouse gas emissions within Nestlé’s operations and is among its most significant agricultural emissions contributors.

At the same time, dairy plays a vital role in global nutrition for both children and adults. The challenge, therefore, is not to reduce its role, but to make production more resilient and less resource-intensive.

The report emphasises that milk quality starts at farm level, where factors such as soil health, herd health, feed quality and climate conditions directly influence outcomes.

“Nestlé remains a company where science meets nutrition,” Serena Aboutboul, Head of Nutrition & Health Strategic Business Unit, Nestlé explains in the introduction to the plan.

“Dairy is an important source of nutrition for young and old alike, providing essential nutrients that support growth, development and healthy longevity.

“Dairy-based products are a central part of our portfolio and that means we need to source milk and milk derivatives responsibly. This includes working with partners and communities on topics like farmer incomes, climate change, animal welfare and nature. We see all these challenges as being highly interconnected. Therefore, the Nestlé Dairy Plan pulls together expertise from across the company and beyond to approach them in a comprehensive and holistic manner.”

Sustainable sourcing

Nestlé sources dairy through two primary channels: derivatives such as milk powders, whey and lactose are purchased from cooperatives or suppliers, while fresh milk is sourced directly from farmers and then processed within Nestlé facilities.

Responsible sourcing for the company involves improving traceability and closely monitoring production practices, supported by its Responsible Sourcing Core Requirements and due diligence frameworks.

Nestlé collaborates with key suppliers—including Fonterra, Sodiaal Euroserum, Lactalis, Agropur, Land O’Lakes and FrieslandCampina—to drive efficiencies, develop low-emissions solutions and scale regenerative agriculture across its value chains.

Emissions reduction 

Dairy represents a significant opportunity for emissions reduction at scale. In 2025, Nestlé reported a 26% reduction in net greenhouse gas emissions across its dairy supply chain compared to its 2018 baseline.

This progress is linked to initiatives such as lower-carbon feed, precision feeding techniques, regenerative agriculture, improved manure management and technologies designed to cut methane emissions and enhance resource efficiency.

Examples include biodigesters in India, a net zero pilot farm in New Zealand and a programme in the Netherlands targeting a 50% reduction in milk’s environmental footprint by 2030.

“The Nestlé Dairy Plan is the embodiment of Creating Shared Value: supporting supply continuity, mitigating risk, and delivering benefits to stakeholders,” says Antonia Wanner,Chief Sustainability Officer at Nestlé.

“When things are done well, everyone stands to benefit – the farmer who has improved their income or is on firmer ground when challenges arise, Nestlé, which has access to high quality ingredients and the environment, because of the resource-efficient, nature-based approach to agriculture we are promoting. By working at a systems level with carefully selected partners, we can help the sector transform.”