Sustainability and Problems in the Dairy Industry

TREWITHEN DAIRY
SUSTAINABILITY AND THE
DAIRY INDUSTRY
The Case of Trewithen Dairy
Contents 1.0 Introduction. 3 2.0 Sector Overview (Quadruple Bottom Line Theory) 4 2.1 Profit 5 2.2 Environmental Impact 6 2.3 Social Impact 8 3.0 Sustainability in the Dairy Industry. 11 3.1 The Slow Dairy Model 11 3.2 Managing Challenges and Limitations. 13 4.0 Trewithen Dairy. 14 4.1 Company's Overview.. 14 4.1.1 Mission. 14 4.1.2 Business Strategy and Future Goals 15 4.1.3 Quadruple Bottom Line and Competitor's Comparison. 18 5.0 Conclusion. 20 6.0 Recommendations 21 7.0 References. 2
List of Figures
Figure 1. 7 Figure 2    8 Figure 3    9 Figure 4. 15 Figure 5. 17
1.0 Introduction
The dairy industry in the United Kingdom is an integral part of the U.K.'s agricultural and food manufacturing sectors. The UK is the world's sixth-largest milk producer and is a major producer of dairy products such as cheese, butter, and yogurt. The U.K. dairy industry contributes approximately £5 billion to the U.K. economy, directly employing over 11,000 people and supporting an additional 70,000 jobs in the supply chain. The U.K. dairy industry is also a significant exporter, with over a quarter of all U.K. dairy production exported to over 80 countries worldwide. Dairy farmers face several challenges, including increased global competition, volatile milk prices, and changing consumer preferences (Macrae et al., 2019). As a result, the industry has become more consolidated and focuses on diversifying and innovating to remain competitive.
In response to customers' demands for dairy products produced sustainably, the dairy industry is starting to recognize the need for change and taking steps toward sustainability (Feil et al., 2020). They are finding ways to reduce their carbon footprint by transitioning to more efficient energy sources, such as solar and wind energy, and by decreasing the amount of water and land used in production (Arvidsson Segerkvist et al., 2020). They also use more sustainable practices, such as recycling and composting, to reduce waste and pollution. Many companies are also investing in animal welfare and developing more humane methods for treating dairy cows. Finally, they are exploring new technologies, such as precision agriculture, to help increase yields and reduce the environmental impacts of production. All of these efforts are helping the dairy industry become more sustainable and meet the needs of customers who demand dairy products produced using sustainable means.
In the first chapter (With the help of the Quadruple Bottom Line Theory), this report will discuss the problems in the dairy industry (environmental and social). Environmental issues include water pollution, air pollution, soil erosion, and using fertilizers, pesticides, and herbicides. Social problems associated with the dairy industry have animal welfare and food safety concerns, labor issues, and production economics (Tricarico et al., 2020). The second chapter of this report will look at the sustainable dairy movement represented by the Slow Dairy Model, its limitations in contrast with the Fast Dairy Model, and how Slow Dairy companies manage these limitations. In the third chapter, a sustainable dairy industry (Trewithen Dairy) will be introduced. Trewithen Dairy is committed to sustainability by reducing its carbon footprint, improving energy efficiency, and reducing waste and packaging. A company review is given with an emphasis on the vision, mission, future goals, and business strategy. A comparative analysis will be conducted comparing Trewithen and other sustainable and unsustainable competitors in the market. The problems from the Quadruple Bottom Line Theory that need to improve will also be discussed. Recommendations will then be given to help Trewithen Dairy to overcome its limitations and improve its sustainable business practices.
2.0 Sector Overview (Quadruple Bottom Line Theory)
2.1 Profit
The dairy industry is an integral part of the U.K. economy, providing jobs and income for many people. However, the profitability of dairy farms has been declining in recent years due to a combination of factors. These include high feed costs, competition from factory-style dairy farms, and market forces that have caused milk prices to fall. The U.K. government has responded by introducing programs that provide financial assistance to struggling dairy farmers and help them reduce costs, such as the Dairy Margin Coverage Program and the Dairy Income Loss Contract Program (Dallago et al., 2021). Additionally, the industry has been working to bring new products to market, such as organic and value-added Dairy, to help farmers remain profitable.
Profits in the dairy sector are a crucial indicator of the health and success of dairy businesses. As competition in the sector increases and consumer demands for more sustainable options grow, sustainable business practices are becoming increasingly crucial for dairy companies to remain profitable (Rodríguez-Bermúdez et al., 2019). Sustainable practices include reducing water and energy usage, reducing emissions, reducing waste, and increasing the efficiency of production processes. These practices can reduce costs while also increasing the sustainability of the business. Sustainable practices also help to improve public perception of the company, as consumers are more likely to buy from businesses that prioritize sustainability (Lovarelli et al., 2020).
It is important to note that implementing sustainable practices only sometimes leads to immediate profitability. Companies must be willing to invest in sustainable practices in the short term for long-term gains (Brito et al., 2021). In the long term, however, sustainable companies tend to outperform their peers regarding profitability. Studies have shown that companies prioritizing sustainability tend to have higher stock prices and higher returns on investment than their peers.
2.2 Environmental Impact
The dairy sector has a significant environmental footprint. Dairy production requires large amounts of water for cleaning, cooling, feeding animals, and producing feed crops. The animals themselves produce large quantities of methane gas and other pollutants, which can have a negative impact on air quality (Ritchie, 2022). Furthermore, Dairy operations often require large amounts of land, which can lead to deforestation and soil erosion. Additionally, using fertilizers, pesticides, and hormones in dairy animals can contaminate water and negatively impact local wildlife (Üçtuğ, 2019). Finally, the transport of dairy products can lead to increased air pollution. These impacts can negatively affect the environment and must be addressed to ensure sustainable dairy production (González-Recio et al., 2020).
Figure SEQ Figure \* ARABIC 1
(Ritchie, 2022)
Figure SEQ Figure \* ARABIC 2(Ritchie, 2022)
2.3 Social Impact
The dairy sector has become an integral part of the global food system, providing an essential source of nutrition for people around the world. However, this sector has been associated with several negative social impacts. One negative social impact of the dairy sector is animal welfare (King, 2019). Dairy cows are often kept in confined spaces and are subject to routine procedures such as tail docking, dehorning, and castration, which can be painful and stressful for the animals. In addition, the cows' diets can be limited, and they may be given hormones to increase milk production (Nalon & Stevenson, 2019). Furthermore, the increased use of technologies such as artificial insemination and genetic engineering has led to animal welfare concerns.
Figure SEQ Figure \* ARABIC 3Photograph: Surge Activism
(King,2019)
Another negative social impact of the dairy sector is the environmental damage caused by manure runoff and methane emissions. Animal waste runoff can pollute waterways, making them unsafe for fishing, swimming, and drinking. In addition, cows produce methane, a greenhouse gas contributing to climate change (Bánkuti et al., 2020).
Finally, another negative social impact in the dairy sector is the exploitation of dairy workers. Dairy workers are often underpaid and overworked and may need access to safe and sanitary working conditions. Furthermore, Dairy workers may be exposed to hazardous chemicals, such as those found in cleaning products, which can cause long-term health problems (Pappa et al., 2019).
To address these issues, governments and advocacy groups worldwide have set standards to ensure dairy products' ethical and sustainable production. Regarding animal welfare, the industry has adopted several measures to ensure the humane treatment of livestock. For example, the Department for Environment, Food and Rural Affairs (Defra) has implemented a code of conduct that outlines acceptable practices for the care and handling of animals (Curnow, 2019). The regulation prohibits using physical force and encourages farmers to provide their animals with adequate space, nutrition, and veterinary care (Pryor, 2022).
The dairy sector has implemented standards to address labor exploitation (Loury, 2020). The International Labor Organization (ILO) has adopted several conventions to ensure the health and safety of workers, including the Working Conditions and Working Hours Conventions. The ILO has also advocated for improved labor rights, such as the right to collective bargaining and decent working conditions. Additionally, the Food and Agriculture Organization (FAO) has developed guidelines to protect workers in the dairy sector, such as the Guidelines for Good Dairy Farming Practice. These standards have been developed to ensure that workers in the dairy sector are provided with safe and healthy working conditions, fair wages, and other protections.
Regarding manure runoff, the EPA has set the Total Maximum Daily Load (TMDL) standards, which limit the number of pollutants that can be discharged into the waters of the United States. Under the TMDL standards, Dairy farms must adhere to specific waste management techniques, such as manure storage, land application, composting, and treatment. These techniques aim to reduce the number of pollutants discharged and prevent them from entering waterways.
Regarding methane emissions, the EPA has set the Greenhouse Gas Reporting Program (GHGRP) standards, which require dairy farms to report their emissions to the agency. The GHGRP standards also guide how dairy farms can reduce their emissions by implementing energy efficiency measures and using renewable energy sources. In addition, the EPA has set the National Pollutant Discharge Elimination System (NPDES) standards, which regulate the number of pollutants discharged into U.S. waters. Dairy farms have to follow specific protocols to ensure that their discharges do not exceed the limits set by the NPDES standards. These standards are essential in tackling the negative social impacts of the dairy sector. They help ensure that dairy farms are in compliance with environmental regulations, and can help reduce the number of pollutants discharged and the number of methane emissions produced (Pappa et al., 2019).
3.0 Sustainability in the Dairy Industry
3.1 The Slow Dairy Model
The Slow Dairy Model is a joint effort between dairy farmers, milk processors, food retailers, and the public to promote sustainable dairy production. This model is used by companies committed to sustainable dairy production and production processes. It focuses on the long-term sustainability of the dairy industry, including the health and welfare of animals, the environment, and the local economy. It emphasizes the use of low-impact production methods, such as pasture-based grazing and rotational grazing, and a commitment to animal welfare and the humane treatment of dairy cows. It also promotes using natural fertilizers, minimal use of chemicals, and recycling of manure and other waste (Loury, 2020). Additionally, the Slow Dairy Model encourages the development of small, local, and family-owned dairy farms, which can help to create a more sustainable and equitable food system. This model is based on the idea that dairy products should be done at a slower, more natural pace. It emphasizes the quality of the food produced, the welfare of the animals, and the preservation of the environment.
One of the main advantages of the Slow Dairy Model is that it is better for the environment. It uses fewer resources, such as water and energy, and fewer chemicals. This model also reduces the amount of methane gas cows produce, which is a significant contributor to global warming. Additionally, this model focuses on providing cows with the best possible care, including a natural diet and plenty of space to roam. This helps ensure the cows are healthy and happy, leading to higher-quality milk.
The Slow Dairy Model also allows for more efficient use of land. This is because cows can graze on grass rather than relying on grain-based feed. This means less land is required for production, allowing more land to be used for other purposes (Pappa et al., 2019). Additionally, this model allows for better soil quality, as it does not require chemical fertilizers and pesticides that can degrade soil quality. Additionally, using grazing cattle also helps reduce the spread of soil-borne diseases.
Finally, the Slow Dairy Model also helps to reduce the amount of waste generated by the industry. This is because the cows are not confined to a small space, reducing the amount of manure that needs to be disposed of. Additionally, the cows can graze on grass, a renewable resource, reducing the need for grain-based feed (Loury, 2020). This reduces the number of chemical fertilizers and pesticides used and the amount of water used to produce feed. Finally, the cows are not exposed to the same level of antibiotics and hormones as those used in conventional dairy products, reducing the environmental impact.
3.2 Managing Challenges and Limitations
Slow dairy companies face numerous challenges, but the most significant challenge is that posed by fast dairy companies. The Fast Dairy Model and the Slow Dairy Model are two distinct approaches to dairy farming. The Fast Dairy Model focuses on providing a high volume of dairy products to the market quickly to maximize profits. This model ty...