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Sell or Hold on to Carbon Credits: a Priority Topic for the Dairy Industry

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One of the biggest advantages of agriculture is its capability of sequestering carbon in the soil. As a result, pollutant industries that are trying to improve their own carbon footprint, are increasingly looking at the potential carbon credits from the agricultural sector. The dairy industry is in a favorable position to not only become a carbon “sink” but a source of interest for methanation processes from manure.

“Methanation is something that is positive for the environment,” states Etienne Dupont, Sustainable Agriculture Advisor at Agropur. “It’s a beneficial process, especially for products which would otherwise not be of any value, such as food residues.”

Manure is a major source of methane, which explains why the dairy industry is targeted in carbon neutrality programs. Moreover, in April 2023, the Québec government announced a $3.6 million investment to help the province’s dairy producers reduce methane emissions by 14 to 16% per kilo of milk produced and attain carbon neutrality by 2050.

“Manure is full of nutrients, and it can be of use to producers on their land to reduce the purchases of mineral fertilizers, thereby improving their carbon footprint,” notes Mr. Dupont.

 

Did you know? CO2 and Methane

The Importance of Keeping Credits in the Dairy Industry

Many producers are being offered sums of money, whereby their manure would be sent to a biogas plant. Based on the regulation currently in effect in Québec, once the carbon credit is delivered to the biogas plant, it then belongs to the operator of the plant. The same can be said for other jurisdictions.

This still might be interesting for an agriculture business from a monetary standpoint, but caution is in order. In fact, Agropur’s President, Roger Massicotte, touched on this issue at the Summer Facilitators’ Meeting, on May 30.  “You need to think about the mid- and long-term impact before signing an agreement. Additionally, you need to ask yourself if losing these credits would be detrimental for your farm or dairy industry. Our efforts should not be made for the benefit of other industries. If the credits are sold and the improvements to the carbon footprint are transferred to other industries, the results can no longer be factored into the dairy industry.”

On this subject, Etienne Dupont believes if the farms loose such leverage, the reductions will have to come from elsewhere to attain the net zero targets. “There might be less potential for improvement if we focus solely on field work, soil cultivation, animal nutrition or the energy efficiency of the farm as a whole.”

Measuring One’s Footprint with Sustainable Farms is First and Foremost

Clients and consumers want the impact of dairy products on greenhouse gas emissions to be gradually reduced over time, and they want the dairy producers to help in the fight against climate change.

This, among other things, is what motivated Agropur to launch Sustainable Farms, a pilot project whose environmental component comprises 19 members. The objective of the project is to first determine the footprint of each participating farm and then suggest areas to improve their footprint.

“The incentive for producers is the longevity of the dairy industry, the ability of the industry to remain competitive over time, but especially the future of their own businesses. We want people to look at what we’ve done at Agropur and realize this is what they are supporting when they buy our products. It’s imperative we must do this for the future,” concludes Etienne Dupont.

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