Latin America’s Unique Dairy Opportunity

Dairy matters to Nestlé. It was the essential of our business back to our roots when we were founded in 1866, and it is still critically important today. Milk is our biggest raw material by volume, and integral to many of our iconic products, from infant nutrition to dairy culinary solutions. Dairy alone accounts for more than 10% of our global business.

Dairy is also vital to the growth and nourishment of people around the world, from early ages and throughout their lives. Its unique nutritional profile is difficult to match.

But there is a catch. Dairy has a massive carbon footprint. In 2021, it accounted for 47% of Nestlé’s carbon emissions in Latin America. Almost half.

Our goal is to achieve a net zero dairy industry by 2050. Ambitious? Yes. But I am proud to say that in partnership with our farmers (more than 28,000 in Latin America alone), Nestlé has already begun to implement bold measures that will enable our transition to net zero dairy farming systems.

Our climate-smart solutions for carbon net zero dairy farming are innovative and varied: They range from helping farmers transition to organic fertilizers (which improves the quality of pasture), to supporting smallholders as they adopt regenerative practices like multispecies pastures (which restores soil health and improves yield).

An excellent example is the use of silvopasture, where trees are introduced into areas used for livestock grazing, alongside mixed farming of livestock and crops, to cover crops to protect soil and improved manure management.

The goal is to fight climate change, but to do so in ways that improve farmers’ livelihoods as well as animal welfare.

Now, what does this mean for our Zone? This is a fascinating question. I believe Latin America may have a unique opportunity. Let me explain why.

Latin America is already an agricultural powerhouse, and is likely to remain so given its significant land resources. We are exporting milk to other continents, proof that we are globally competitive, with the potential to be a pivotal dairy supplier to the world.

Consider now, the unique profile of the Latin American dairy industry compared to the rest of the world. Farming is far less industrialised, and open grazing is already integrated into its practice. In fact, dairy farming practices in Latin America may already be more sustainable and animal-friendly than elsewhere.

This is an advantage which farmers, with Nestlé’s help, can leverage. There is a very real opportunity to close the gap between where we are now to an efficient, effective and, at the same time, truly sustainable dairy industry.

In short, Latin America has what it takes to become a model for sustainable dairy farming.

I believe that we can indeed achieve that leadership position, and when we do, the payoff will be significant. Sustainable dairy is already in demand, and that demand is going to accelerate. This means we will be aligned to growing consumer demand and positioned to thrive — to become a new global pole for the dairy industry.

If we do this right (and we will), we can also be leaders on the agripreneurship front. Our sustainable and regenerative practices will make dairy farming an attractive prospect for young people looking for ethical opportunities. We can grow this industry to include the youth, and women. This will also make Nestlé a natural fit as the employer of choice for the next generation.

Nestlé has always been a company that adds real value to our communities. The transformation of dairy farming, to which we are all truly committed, may be a challenge. But what we are doing, and what we are about to do, gives me a tremendous sense of hope for Latin America and for the future.