Why Danone invests millions in regenerative agriculture

Friesian cattle in a farmers field taken from under a tree.
Regenerative agriculture is a lever for climate de-risking and long-term resilience for Danone. (Getty Images)

Danone has made regenerative agriculture a central pillar in its sustainability strategy. What value does it bring?

Regenerative agriculture is gathering pace – the vast majority of the top 100 food and beverage companies now invest in actions that align with this farming concept, according to FAIRR, an investor network that monitors the disclosures of major agri-food companies.

But questions around regen ag’s definition, demand, verification and value loom large. If it is to scale and achieve mainstream status, understanding the practices and the results they achieve can go a long way.

For dairy and nutrition major Danone, regenerative agriculture is a climate risk and supply chain resilience lever. For nearly a decade now, the company has been forging partnerships, investing in training and development, and measuring the outcomes of practices adopted by its global producer network.

Danone’s efforts in this field focus on soil, water, biodiversity and farmer livelihoods and encompass thousands of smallholder farmers in regions such as Africa as well as 20 agricultural projects in 25 countries.

In 2026, 91% of Danone’s milk supply is covered by farm‑level assessment tools to monitor environmental practices and support the transition to regenerative agriculture; and 42% of the company’s key ingredients are sourced from farms already engaged in regenerative ag practices.

In the US alone, the company partners with more than 50 producers, said Jessie Copeland, senior director of regenerative agriculture at Danone US.

“Since 2017, we’ve been scaling regenerative agriculture in partnership with farmers, starting with on-farm soil health research. Our regenerative agriculture programme focuses on three areas: protecting soils, water and biodiversity; empowering generations of farmers in the transition; and bolstering animal health and welfare.”

Danone's regen ag stats

  • 42% of key ingredients sourced from farms transitioning to regenerative agriculture (2025)
  • Target for 2025 (30%) exceeded; next ambition: ~45% by 2030
  • 91% of direct milk supply covered by farm‑level assessment and monitoring tools
  • 29.8% reduction in methane emissions from fresh milk vs. 2020 baseline
  • 97.9% of key commodities verified deforestation‑ and conversion‑free
  • 20 agricultural projects across 25 countries supporting regenerative practices
  • Regenerative agriculture embedded in Net Zero 2050 strategy and Scope 3 emissions reduction
  • Progress tracked via farm scorecards, traceability systems, and satellite monitoring

Source: Danone's current universal registration document

So how does the strategy work in practice? In the US, Danone works with each farm partner on an individual basis – including to identify practical, scalable approaches that are agronomically and economically viable.

“These practices are tied to a variety of benefits that promote the long-term resilience of farms – from higher profit margins and reduced input costs to increased stability in the face of climate impacts like extreme weather,” said Copeland.

Specifically, Danone’s approach includes:

  • sharing best practices, profitability analyses, and financial support;
  • developing a model that allows producers to transparently set prices based on the cost of production plus a margin, and
  • offering consulting and technical assistance related to profitability, generational transfer and transition planning.

Upskilling is a crucial part of the puzzle: but training up its global producer network is no easy feat.

To address this, Danone launched the Milk Academy, a global initiative designed to upskill producers through both company-led training and peer knowledge-sharing. The programme is also essential to reaching smallholder farmers and teaching them about the yield benefits of adopting regenerative agriculture practices.

“To date, we have invested millions of dollars in support of US regenerative agriculture and farmer resiliency with 100% of our direct farm partners,” Copeland said. “We also partner with like-minded organisations and farmers who share our vision to unlock solutions, innovate and drive change at scale.

“Last year, we announced a first-of-its-kind value chain collaboration with leading retailer, Ahold Delhaize USA, and global environmental nonprofit, The Nature Conservancy, to enhance farm and supply resilience in dairy production. Through this partnership, we’ve helped farms accelerate regenerative agriculture and adopt specific tools, such as an autonomous irrigation system, which decreases overall water use and fertiliser runoff.”

Danone's core regen ag practices

  • Soil health management – improving soil fertility and organic matter to boost long‑term productivity
  • Manure and nutrient management – better use of manure to cut fertiliser needs and reduce pollution
  • Water stewardship – more efficient irrigation and water use on farms
  • Biodiversity protection – actions such as maintaining natural habitats and hedgerows
  • Animal welfare improvements – linking herd health and welfare to more sustainable dairy systems
  • Reduced inputs – limiting synthetic fertilisers, pesticides and chemicals
  • Feed and herd optimisation – improving livestock diets to reduce methane emissions
  • Continuous monitoring – use of farm‑level scorecards and tools to track progress over time

Why does Danone invest in regen ag?

So what value does regenerative agriculture unlock for Danone?

In the short term, regenerative agriculture is a risk-management tool that helps strengthen supply chains, align with regulatory and consumer expectations, and lay the groundwork for long-term resilience.

And beyond that, farming regeneratively is hoping to contribute to emissions reductions, stable supply chains, and a bolstered health and sustainability messaging tied to the company’s wider ambition on product design and innovation.

These objectives aren’t abstract, Copeland suggested, and actions do deliver results.

“Our farmer partners report that Danone-supported regenerative practices – including improved seeding techniques – are strengthening soil health, conserving water and supporting higher-quality milk production,” he said. “Our dairy farmers have access to innovations like smart soakers and cow monitoring systems to help improve energy efficiency and reduce labour demands while still ensuring cows’ health and safety.”

Recent examples from the US include Freeland Dairy cutting energy use by up to 50% through upgraded cooling systems; Indian Stone Dairy using smart sprinklers to conserve water and improve herd health, and GreenTop Acres deploying autonomous manure and irrigation technology to boost yields, reduce fertiliser use, and lower methane emissions.

“Investing in farmers and regenerative agriculture helps strengthen supply chain resilience and support farmer livelihoods over the long term,” Copeland said.

“To make progress durable and credible at scale, companies need to work in partnership with farmers and like-minded organisations, focus on practical practices that can be measured over time, and continue improving transparency on outcomes.”