Co-op Launches £820K Sustainability Fund to Support Beef, Lamb, and Dairy Farmers

Image Credit: Co-op

Co-op has introduced an £820,000 sustainability fund to incentivise beef, lamb, and dairy farmers to reduce carbon emissions and promote biodiversity. The initiative will be implemented through two new sustainability projects, offering participating farmers additional payments beyond the standard price for their products.

The first project focuses on the dairy sector, partnering with Soil Association Exchange to assist 140 farmers from Co-op’s Dairy Farming Group. The program will provide:

• Sustainability payments are tied to progress in reducing carbon footprints.

• Baseline assessments for key indicators like biodiversity and soil health.

• Customisable action plans, supported by advisors, with options including:

  • Reducing fertiliser use.

  • Improving fuel efficiency.

  • Investing in renewable energy like solar.

This initiative complements a separate Soil Association Exchange program, backed by Co-op, Tesco, and Lidl, which offers similar incentives for arable farmers.

The second project, the Beef Sustainability Scheme, rewards Co-op’s Farming Group farmers for adopting sustainable practices. Following a successful two-year pilot, the scheme will now extend to 15% of Co-op’s beef supply chain and include lamb farmers for the first time.

Farmers will take actions such as:

• Breeding more efficient livestock.

• Improving forage quality.

Over the next five years, the program aims to save more than 100,000 tonnes of carbon, aligning with Co-op’s commitment to reducing its environmental impact.

Co-op emphasises that these projects reflect its long-term investment in UK farming, building on its history of supporting local agriculture. Key milestones include:

• Becoming the first UK grocer to source 100% of its fresh and frozen chicken, pork, beef, and lamb from UK farms in 2014.

• Exclusively selling British free-range eggs, milk, and cream.

“We know British farmers are facing many challenges and have seen first-hand the fear, anxiety and anger they are currently feeling,” said Co-op MD Matt Hood.

“Backing UK agriculture is more important than ever. At Co-op, this means investing hundreds of millions every year to be one of the few UK retailers to be totally 100% British across meat, poultry and dairy throughout our own supply chain and committing support for farmers addressing the growing need for sustainability and climate resilience,” he added.

“We know our members and customers feel the same, and they value being able to buy the high quality, British-sourced products they love,” Hood said.

“In these uncertain times for our industry, we need to work together across the supply chain,” said Tom Bramall, dairy farmer and chair of The Co-op Dairy Group.

“Farmers like me want to play our part when it comes to sustainability, but we need support. It’s fantastic to see Co-op directly rewarding farmers and recognise the positive role we play in addressing the issues around climate change.”