Arla Foods Annual Report 2020
Management Review Our Strategy
Our Brands and Commercial Segments Our Responsibility Our Governance
Our Performance Review Our Consolidated Financial Statements Our Consolidated Environmental, Social and Governance Data
Environmental figures
1.4 ANIMAL WELFARE
Animal welfare journey well on track
Animal welfare is a key priority for our farmer owners,
and for Arla as a company. In 2020, it became
mandatory for Arla's owners to report on the welfare of
their cows quarterly through ArlagårdenⓇ, including
information about the housing, grazing, health care
and general well-being of their cows (until 2019
farmers reported these figures on a voluntary basis as
part of ArlagårdenⓇ Plus. The reported figures are
regularly audited by a world-leading quality assurance
and audit firm specialising in animal welfare. Read more
on page 35.
Animal welfare has multiple dimensions and Arla aims
to measure and externally report on the most important
aspects of it. In 2020, audits on farms were delayed due
to the Covid-19 pandemic and the complex process of
harmonising the audit process across all owner
countries. Consequently, the results of the quarterly
self-assessment by farmer owners will be reported
externally in the Annual Report 2021 after the
necessary external verification is completed. Arla is
committed to reporting on the most important
measures to describe and improve animal welfare:
the ratios of cows in good body condition, clean cows,
mobile cows and cows without injuries. Arla will also
disclose the ratio of audited farmers complying with our
animal welfare standards.
In 2020, the following indicators were reported
(see definitions and accounting policies below):
■ Percentage of farmer owners reporting
on animal welfare
Audits on farms
Somatic cell count
In 2020, the percentage of owners reporting on animal
welfare increased to 100 per cent compared to 89 per
cent in 2019 following the decision to make animal
welfare reporting mandatory as part of ArlagårdenⓇ.
The average somatic cell count across Arla geographies
fell by 1 per cent to 194 thousand cells/ml compared to
196 thousand cells/ml last year. The percentage of audit
visits was lower in 2020 (23 per cent compared to
39 cent in 2019) due to the Covid-19 pandemic and the
audit harmonisation process. However, all farms deemed
as high risk from an animal welfare point of view were
audited in 2020.
Definitions
Percentage of farmer owners reporting
on animal welfare
The percentage of owners reporting on animal welfare
is defined as the number of owners who submitted their
mandatory ArlagårdenⓇ questionnaire (in 2018-2019
Arlagården® Plus), including questions on animal
welfare for the fourth quarter of a given year, compared
to the total number of active owners in the same year.
Audits on farms
Audits on farms are the number of ordinary audits and
other audits, including spot check visits on farms in a
given year, compared to the total number of Arla owners.
Somatic cell count (average)
Somatic cells in milk are primarily white blood cells.
An elevated level of somatic cells can indicate
inflammation (mastitis) of the cow's udder, which causes
the animal pain and stress, and also lowers milk quality.
ESG Table 1.4 Animal welfare indicators
2020
2019
2018
2017
2016
Farmer owners reporting
on animal welfare (%)
100%
89%
82%
Audits on farms (%)
23%
39%
50%
36%
36%
Somatic cell count (thousand cells/ml)
194
196
198
194
Percentage of farmer
owners reporting on
animal welfare
(per cent)
100%
89%
2019
2020
וווי
Accounting policies
Percentage of farmer owners reporting
on animal welfare
Percentage
of audits
Somatic cell count
(thousand cells/ml)
(per cent)
39%
23%
From 2020, it is mandatory for all farmer owners to
report on the welfare of their herds quarterly by
submitting a questionnaire in the ArlagårdenⓇ system.
If they do not submit the questionnaire by the deadline
and after having received a reminder, owners will need
to cover the cost of the audit visit themselves.
Audits on farms
Animal welfare conditions on Arla farms are regularly
audited. The audit is conducted by an external party
and is free of charge for the farmers if they submit their
data on time. Farms in Denmark, Sweden, Germany
and Central Europe are audited every three years, while
farms in the UK are audited every 18 months (due to
compliance with local regulations). In a few cases
farmers could receive more than one audit in the same
calendar year.
196
194
Somatic cell count:
Arla monitors the somatic cell count (SCC) by analysing
milk at bulk tank level each time milk is collected from
the farms. Levels are continuously reported to
safeguard milk quality. The figure reported here is a
weighted average of Arla's entire milk intake in a given
year. The SCC count is received from several laborato-
ries across owner countries. SCC levels are consistently
low across all markets.
Uncertainties and estimates
The UK somatic cell count includes the somatic cell
count for contract famers as well as owners, however
this has no significant impact on the total somatic cell
count for 2020.
127 ARLA FOODS ANNUAL REPORT 2020View entire presentation