According to Nestlé’s newly released Dairy Plan Report 2025, the global food giant is accelerating its efforts to transform dairy supply chains through a holistic, systems-level approach. By linking productivity, milk quality, and sustainability, Nestlé reports working with over 130,000 dairy farmers across more than 40 countries to future-proof its most critical ingredient.

Based entirely on data and insights provided in the Nestlé report, this analysis breaks down the strategic pillars, key metrics, and technological investments driving the company's agricultural transformation.

Climate Impact: Exceeding GHG Reduction Targets

Nestlé acknowledges that dairy is the largest agricultural source of greenhouse gas (GHG) emissions within its supply chain. However, the company views this challenge as its greatest opportunity for impact.

According to the report, Nestlé achieved a 26% net reduction in GHG emissions across its dairy supply chain in 2025 (against a 2018 baseline), surpassing its 20% Group target. Furthermore, the company reported a 25% reduction in methane (CH4) emissions.

Nestlé attributes these reductions to prioritising areas with the highest impact potential:

• Lower-Carbon Feed: Implementing precision feeding for carbon-optimised cow nutrition and developing lower-carbon feed rations with local processors.

• Manure Management: Transitioning waste into usable resources, such as facilitating biogas plants to generate electricity and heat, and converting manure into compost to reduce reliance on chemical fertilisers. Nestlé highlights a project in India where 6,400 small biodigesters and 220 large biodigesters were installed, cutting an estimated 23,000 tons of GHG emissions in 2025.

Scaling Regenerative Agriculture and Nature Conservation

Nestlé defines regenerative agriculture as an approach aimed at conserving and restoring natural resources, primarily soil, water, and biodiversity. The 2025 report reveals that 34% of Nestlé’s dairy was sourced from farmers adopting regenerative agriculture practices, significantly beating the company's 20% target.

Key initiatives outlined by Nestlé include:

• Soil Health and Minimum Tillage: In Brazil’s Nature por NINHO program, Nestlé notes that over 1,000 farming families are transitioning to minimum tillage and planting cover crops to preserve soil structure and reduce topsoil loss.

• Water Stewardship: Recognising water as a strategic priority, Nestlé has deployed precision drip irrigation and smart soil moisture sensors in regions like Mexico and Pakistan to optimise water efficiency.

• Biodiversity: In the UK, a partnership with the First Milk cooperative resulted in 39 km of new hedgerows planted in 2025, providing vital livestock shelter and connecting natural habitats.

Professionalising Farmer Livelihoods

A core theme of Nestlé’s report is the necessity of making dairy farming an attractive, profitable, and resilient business for future generations. The company cites global megatrends pulling youth away from rural areas and emphasises "agripreneurship" training to counter this.

Nestlé’s livelihood strategies focus on:

• Financial Incentives: Farmers adopting regenerative practices receive climate premiums. In Brazil, participating farmers earn a 2% to 5% premium for their milk. In Switzerland, the AgroImpact initiative (co-founded by Nestlé) distributed 3.97 million Swiss francs in premiums to reward verified carbon reductions.

• Generational and Gender Shifts: In Indonesia, Nestlé’s barn modernisation and equipment subsidies are helping transition traditional farms into modern businesses, yielding up to 33% increases in milk production per cow and keeping younger generations engaged. Furthermore, Nestlé’s "Força da Moça do Campo" project in Brazil has empowered over 1,600 women, leading to a 36% increase in female participation in farm management decision-making.

Animal Welfare as a Driver of Productivity

Nestlé asserts that animal welfare and farm efficiency are inextricably linked. The report details how investments in cow comfort and preventative health directly bolster farmer incomes and reduce emissions per litre of milk.

• Combating Heat Stress: In Northern Spain, where climate change is driving record temperatures, Nestlé co-invested in automated cooling and ventilation systems across 57 farms. According to the report, farms receiving these animal welfare investments saw a 16% increase in milk yield.

• Precision Nutrition: In Chile, Nestlé implemented a feed optimisation project using Near-infrared spectroscopy (NIRS) technology to analyse forage composition in real-time. This allowed farmers to match rations precisely to herd needs, resulting in a production increase of approximately 3 litres per cow daily and a 9% reduction in feed costs per litre.

The Power of Partnerships and Science

Nestlé emphasises that system-level changes cannot be achieved in isolation. The company relies on a vast network of over 200 suppliers and partners. Global alliances include the Sustainable Agriculture Initiative (SAI) Platform, the World Farmers' Organisation (WFO), and The Nature Conservancy (TNC).

Additionally, the Nestlé Institute of Agricultural Sciences (NIAS) serves as the research backbone of the Dairy Plan. By rigorously testing feed supplements, regenerative manure systems, and precision monitoring tech, NIAS ensures that sustainability initiatives align with performance objectives and protect farmer revenues.

Nestlé’s 2025 Dairy Plan Report paints a picture of a supply chain undergoing a rapid, technology-assisted transition. By treating emissions reduction, soil health, animal welfare, and farmer livelihoods as interconnected variables rather than isolated metrics, Nestlé states it is securing the long-term viability of its dairy supply while meeting its Net Zero roadmap commitments.

Nestlé Dairy Plan Report 2025. All data, program descriptions, and strategic insights reflect the reporting and claims made by Nestlé.