Partnerships + Consistency = Sustainability Successes

Hear from supply chain experts participating in a recent panel discussion

How can corporate sustainability actions become a dependable revenue stream for farmers? This important question was the primary driver behind a breakout session moderated by Athian CEO Paul Myer at the Dairy Sustainability Alliance Spring Meeting. Project partners, Athian, Dairy Farmers of America (DFA), ALDI and Newtrient were joined by a California farmer to present a first-of-its-kind collaborative project supporting a small cohort of dairy farmers in adopting new manure management systems.

Farmers Open to Innovation and Collaboration

As farm economics grow more complex, investing in new sustainability technologies can be a major decision. Upfront costs are often substantial, and ongoing maintenance can also be expensive.

Jesse Jongsma, a California dairy farmer and owner, recalls adopting an alternative manure management program on his farm. He first received grant funding for a solid-liquid separation system to keep his lagoons clearer. The system continues to work well, but maintenance can be costly as pumps and moving parts wear down from manure, sand and water.

“Maintenance costs can run tens of thousands of dollars, sometimes within a few months,” Jongsma says. “I sold my first Scope 3 credit through Athian in 2024, and the revenue went right back into ongoing system costs, making it feasible to continue.”

Without the initial grant and revenue from credit sales, Jongsma says he likely would not have implemented or been able to sustain the project because of its high capital cost.

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Breakout session during the Dairy Sustainability Alliance Spring Meeting.

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Co-ops Provide Critical Connections

Co-ops, such as Dairy Farmers of America (DFA), are central to making projects like these work. They provide the critical link between farms and credit buyers.

DFA’s Hansel New, assistant vice president of sustainability strategy and programs, explains: “We occupy a space in the middle of the supply chain. As a farmer-owned cooperative, we are especially close to the farms, but we also have deep downstream connections to customers.”

Co-ops help customers build emissions-reduction roadmaps, using modeling to estimate the greenhouse gas reductions different on-farm interventions could deliver. They also identify and recruit farmers interested in adopting the technologies.

Technical Assistance Builds Credibility

Carbon market participation also requires hands-on technical support and organizations such as Newtrient can help tailor sustainability solutions to individual farms.

“Sustainability solutions are not plug-and-play technologies that can be implemented the same way on every dairy farm,” says Jamie Bohl, Newtrient’s senior vice president of sustainability initiatives and business development. “At Newtrient, our teams assess manure collection, farm layout, bedding, climate and other farm-specific operating realities to help ensure success.”

Customers Complete the Chain

Customers complete the carbon market supply chain by serving as both supporters and investors in the sustainability lifecycle. Their purchase of Scope 3 credits encourages farmers to adopt innovative practices that advance environmental goals. As noted earlier, the resulting revenue is often reinvested in the systems and equipment needed to keep reductions flowing.

ALDI US, is one such customer. The company is deeply committed to making a positive impact on people and the planet.

“ALDI is proud of our sustainability work with the dairy industry and to demonstrate how ALDI can move beyond sustainability pledges to structured, contractual participation in supply chain impact,” says Jessica Patel, sustainability director. “By working with co-ops to connect with farmers and partnering with trusted organizations, such as Athian and Newtrient, we aim to create a reliable, long-term revenue stream for dairy farmers, while strengthening the resiliency of our dairy supply chain.”

Longer Term Agreements Feed Future Success

Longer-term agreements, like three-year plus contracts, are becoming increasingly important to the viability and overall impact of projects.

“Longer-term agreements do several things,” says DFA’s New. “They send a clear market signal and give farmers greater confidence that revenue will be available to support ongoing operating and maintenance costs. They also create stronger relationships that allow for additional collaboration beyond a single project.”

These longer agreements not only deliver environmental benefits, but also support farm viability, generational continuity and a reliable supply of nutrient-dense products in the marketplace.

Building on the Momentum

Paul Myer shared successes from Athian’s perspective as a technology provider facilitating the identification, verification and funding of supply chain sustainability projects.

“We have been able to pay farmers north of $25 million for their emissions-reducing efforts,” Myer says. “Farms of all sizes, representing about 10 percent of the U.S. dairy industry, have participated in projects, helping to reduce or avoid more than 600,000 metric tons of CO₂e.”

The panel brought together expertise from all along the dairy supply chain to demonstrate “how” and “why” to build Scope 3 projects with staying power. According to Myer, the session composition and content served as “proof these programs can move beyond theory and work in practice at scale.”