Arla Foods has decided to reward dairy farmers who switch to genetically modified (GM) free feed, as the dairy cooperative intends to address the growing consumer demand for GM-free food.
This decision was taken by Arla's board of directors in the wake of recent developments in Germany, where retailers have been demanding dairy products from cows that have been fed GM-free feed.
Arla chairman Ake Hantoft said: "We own the biggest organic milk pool in the world, for which the feed is by default GM-free. Our Swedish farmers have always used GM-free feed.
"This means that around 20% 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 also added that the decision was based on the commercial opportunity and does not indicate that Arla's owners are taking a new stand on GM.
Hantoft added: "We welcome innovative solutions and new technology, which can improve farming and help feed the world's growing population in a sustainable manner. 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 forward."
Arla is willing to compensate dairy farmers who change to GM-free feed, which is expensive for farmers. This compensation model is currently being made for organic milk.
Arla CEO Peder Tuborgh said: "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."
