Reward regenerative dairy through biodiversity monitoring

Reward regenerative dairy through biodiversity monitoring

Applied by
FrieslandCampinaFrieslandCampina

Summary

Using a biodiversity monitor and reward system to incentivise regenerative dairy practices.

Context

FrieslandCampina, a cooperative of 18,000 dairy farmers, faces biodiversity loss challenges in the Netherlands. To address this, it developed the Biodiversity Monitor and integrated it into its Foqus Planet sustainability programme. The goal is to measure and reward biodiversity improvements at farm level, aligning with the cooperative’s purpose of “nourishing by nature”

Location: Netherlands

Solution

The Biodiversity Monitor is a data-driven tool focusing on four biodiversity pillars:

  • Functional agrobiodiversity

  • Landscape diversity

  • Species diversity

  • Regional biodiversity

It tracks KPIs across soil quality, climate impact, water and air quality, land use, and crop diversity. Integrated into Foqus Planet since 2018, the programme:

  • Monitors sustainability performance annually

  • Rewards farmers with up to €0.035 per kg of milk based on performance

  • Offers an additional €0.045 per kg for certified “On the Way to PlanetProof” milk stream

  • Uses outcome-based indicators to drive awareness and action

Impact

Sustainability impact

Climate

Targets Scope 3 emissions (GHG Protocol Category 1). Includes KPIs for CO₂ emissions per kg milk, nitrogen balance, and ammonia emissions

Nature

Promotes permanent grasslands, nature and landscape elements, and protein self-sufficiency. Improves soil health, water retention, and biodiversity.

Social

Raises farmer awareness of biodiversity impact. Provides financial incentives and recognition for sustainability efforts

Business impact

Benefits

  • Improved environmental outcomes

  • Enhanced farmer engagement and pride

  • Market differentiation via certified milk streams

Costs

  • Premiums funded via cooperative and market revenue

  • Maximum sustainability premium: €0.035/kg milk

  • Additional premium for certified milk: €0.045/kg milk

  • Costs vary by indicator and market value of sustainability performance

Impact beyond sustainability and business

Co-benefits

  • Strengthened trust across stakeholders

  • Alignment with international regenerative agriculture standards

Potential side-effects

Risk of reduced crop yield due to biodiversity practices à mitigated through new revenue models and stakeholder support

Implementation

Typical business profile

  • Dairy cooperatives and processors

  • Companies with Scope 3 emissions from livestock

  • Relevant in EU agricultural sectors

Approach

  1. Develop biodiversity KPIs

  2. Integrate into the sustainability programme

  3. Monitor annually via Foqus Planet

  4. Reward based on performance

  5. Scale through certified milk streams

Stakeholders involved

  • Project Leads: FrieslandCampina

  • Company Functions: Sustainability, procurement, farmer relations

  • Main Providers: SMK (certification), Rabobank, WWF Netherlands

  • Others: Farmers, NGOs, financial institutions

Key parameters to consider

  • Mature initiative since 2018

  • KPIs aligned with regenerative agriculture standards

  • Certification via “On the Way to PlanetProof”

  • Geographic relevance: Dutch dairy sector

Implementation and operations tips

  • Challenge: Farmer awareness → Solution: Outcome-based indicators

  • Challenge: Financial viability → Solution: Premiums and certified streams

  • Tip: Build trust across stakeholders and align with market incentives