The Co-op has launched an £820,000 sustainability fund aimed at reducing carbon emissions in the UK meat and dairy sectors, while supporting nature conservation and restoration on farmlands. The new initiative is designed to incentivize farmers to adopt low-carbon farming practices and safeguard biodiversity.
The fund will directly reward farmers for their efforts in cutting emissions and enhancing environmental outcomes on their farms, specifically within the beef, lamb, and dairy industries. Participating farmers will be able to access additional sustainability payments on top of the prices they are already paid for their products.
Co-op’s Managing Director, Matt Hood, emphasized the importance of supporting British farmers at a time when the industry is facing increasing challenges. “We know British farmers are facing many challenges and have seen firsthand the fear, anxiety, and anger they are currently feeling,” he said. “Backing UK agriculture is more important than ever—this means investing hundreds of millions every year to ensure that we are 100% British across our meat, poultry, and dairy supply chains, while committing to sustainability and climate resilience.”
The initiative will be split into two major projects. The first project is in partnership with the Soil Association Exchange and focuses on helping farmers within the Co-op’s Dairy Farming Group reduce their carbon footprint. Nearly 140 farmers will be involved in this project, which also includes measuring key nature indicators like biodiversity and soil health. Farmers will be able to develop their own action plans, with guidance from Soil Association Exchange advisors. Potential interventions include reducing fertilizer use, boosting fuel efficiency, and investing in solar energy, all of which could lower emissions and save costs.
The second project, Co-op’s Beef Sustainability Scheme, will reward farmers for adopting sustainable on-farm practices, such as improving forage quality. The scheme, which was successfully piloted over the past two years, will now extend to 15% of Co-op’s beef supply chain and will include lamb farmers for the first time. The scheme is projected to save more than 100,000 tonnes of carbon over a five-year period.
In line with its commitment to sustainability, the Co-op is aiming to achieve net-zero greenhouse gas emissions within its operations by 2035, and across its entire value chain by 2040. With this new sustainability fund, the Co-op is taking significant steps toward ensuring that UK agriculture becomes more resilient and climate-friendly, while continuing to support farmers through challenging times.
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