News
Arla to incentivise GM-free
19 May 2016Farmer-owned Arla has taken the decision to start to incentivise more farmers to convert to GM-free feed. The market is increasingly willing to pay a price premium, the company says, and Arla believes it is in a favourable position to capture this new opportunity.
![Arla to incentivise GM-free](/img/ingnet-logo.png)
Farmer-owned Arla has taken the decision to start to incentivise more farmers to convert to GM-free feed. The market is increasingly willing to pay a price premium, the company says, and Arla believes it is in a favourable position to capture this new opportunity.
The decision to incentivise the use of GM free feed has been made by Arla’s Board of Directors on the back of recent developments in Germany, where retailers are increasingly demanding dairy products from cows which have been fed GM-free feed and are willing to pay a price premium. The trend is likely to spread to other markets, the company believes, and Arla wants to capture this opportunity immediately to add value to its farmers’ milk.According to Chairman Åke Hantoft, Arla is well-prepared to meet the growing demand from the trans-European retailers for GM free feed.“We own the biggest organic milk pool in the world, for which the feed is by default GM free,” he said. “Our Swedish farmers have always used GM free feed. This means that around 20 per cent of Arla’s milk pool already meets this market demand. There is commercial potential in this that we can capture and build on immediately by attracting more farmers who are willing to convert to GM free feed.”He underlined that the decision is based on the commercial opportunity and does not indicate that Arla’s owners are taking a new stand on GM.“We welcome innovative solutions and new technology, which can improve farming and help feed the world’s growing population in a sustainable manner,” said Hantoft. “We are not closing a door on GM and we will continue to monitor the scientific research into the pros and cons of GM going for-ward.”Converting to GM-free feed will be a cost for the farmers, Arla notes. However, following the price premium that the retailers and the consumers will be willing to pay, Arla says it will compensate the farmers as they convert. This model driven by market demand is also used for organic milk, for which farmers are already compensated for the extra feed cost.“Our immediate demand is up to 1bn kg extra milk during the next 12 months and we expect to be able to pay an extra 1 eurocent per kg milk,” said CEO Peder Tuborgh. “The market driven compensation will also be paid to all our Swedish farmers, who already use GM free feed. We do not know exactly from when, but we are working fast to unfold the details.” The practical challenges in the company and on the farm are still to be investigated, the company notes.“Currently, the demand comes from Germany, where we will immediately look into the practical issues such as logistics, separated productions etc.,” said Tuborgh. “As the commercial opportunities arise in other markets, we will invite farmers to participate and gradually take on more farmers. But we still need to explore exactly how we can make this happen and how fast.”The genetically modified feeds currently used are in most cases limited to soy, Arla says, which on Arla farms covers between 0 and 10 per cent of the total feed volume. All soy currently used at Arla farms is covered by certificates to support responsible soy production. Despite the fact that the cows are fed with these limited amounts of genetically modified soy feed, their milk is per definition GM-free as the GM can’t be traced to the milk.Related news
![Consumers dislike faba beans’ sensory profile](/47/pdcnewsitem/12/45/47/th124547.png)
Consumers dislike faba beans’ sensory profile
3 Jun 2024
Consumers display low acceptance of faba beans, with sensory properties such as bitterness a core concern, a study suggests. However, for product varieties such as cocoa-free chocolate, this attribute could prove to be a benefit.
Read more![Food scientists uncover new way to preserve nutrient and flavour quality](/47/pdcnewsitem/12/45/35/th124535.png)
Food scientists uncover new way to preserve nutrient and flavour quality
29 May 2024
Researchers have developed a method that guarantees food safety for low-moisture products, such as dried milk, while maximising quality by retaining vitamins, minerals, and flavours, they say.
Read more![FDA scrutinizes milk pasteurisation over HPAI risk](/47/pdcnewsitem/12/45/33/th124533.png)
FDA scrutinizes milk pasteurisation over HPAI risk
28 May 2024
The US Food and Drug Administration (FDA) is undertaking additional scientific research work to ensure that approved pasteurization processes are rigorous enough after retailer milk tests showed contamination from Highly Pathogenic Avian Influenza (HPA...
Read more![Magnum targets ice cream lovers’ moods with new flavours](/47/pdcnewsitem/12/42/41/th124241.png)
Magnum targets ice cream lovers’ moods with new flavours
2 May 2024
Unilever-owned Magnum has released a suite of “mood-inspired flavours” as the 2024 ice cream season kicks off. The offerings, marketed as the Magnum Pleasure Express, are Magnum's first foray into the “mood-food” category.
Read more![The eight global food trends shaping the future of dining](/47/pdcnewsitem/12/41/92/th124192.png)
The eight global food trends shaping the future of dining
23 Apr 2024
Unilever’s Future Menu Trend 2024 report identifies the global food trends shaping the food service industry, providing insights into changing consumer preferences that could provide inspiration for packaged food and drink brands.
Read more![Report outlines how the US interfered with marketing restrictions on formula across the globe](/47/pdcnewsitem/12/41/93/th124193.png)
Report outlines how the US interfered with marketing restrictions on formula across the globe
18 Apr 2024
A recent investigative report by ProPublica unmasked the extensive interference by the US government in international regulations concerning the marketing of formula.
Read more![Ultra-processed food intake in South Africa at concerning levels, study suggests](/47/pdcnewsitem/12/39/42/th123942.png)
Ultra-processed food intake in South Africa at concerning levels, study suggests
19 Mar 2024
As South Africa considers introducing front-of-pack warning labels and strict marketing limits for unhealthy foods, research has found that low-income South Africans get around half of their calories from ultra-processed foods (UPFs) – “a cause for con...
Read more![India’s mithai market develops new ingredient and flavour profiles](/47/pdcnewsitem/12/39/31/th123931.png)
India’s mithai market develops new ingredient and flavour profiles
18 Mar 2024
Mithai is a hugely popular dessert and sweet snack in India and manufacturers are experimenting with unique ingredients, new flavour combinations, and healthier versions to capture new audiences.
Read more![Unilever and Perfect Day’s animal-free dairy dessert: Is precision fermentation the future of dairy?](/47/pdcnewsitem/12/38/53/th123853.png)
Unilever and Perfect Day’s animal-free dairy dessert: Is precision fermentation the future of dairy?
6 Mar 2024
Perfect Day, a precision fermentation dairy supplier, has partnered with Unilever's Breyers, a brand of ice cream and frozen dairy desserts, to launch Breyers lactose-free chocolate frozen dessert.
Read more![Macauba oil emerges as potential rainforest-friendly palm oil alternative](/47/pdcnewsitem/12/38/03/th123803.png)
Macauba oil emerges as potential rainforest-friendly palm oil alternative
1 Mar 2024
Producers and researchers consider the rainforest-friendly credentials of Macauba palm oil and whether its sustainability credentials offer an opportunity to replace palm oil.
Read more