Industry Progress

The U.S. dairy community is working across the value chain to reduce emissions and increase carbon sequestration through innovation, investment, and collaboration. From feed production and manure management on farms, to renewable energy integration at processing facilities and low-carbon packaging and transportation, stakeholders are scaling solutions that reduce the industry’s footprint while supporting productivity, resilience, and business value.

Protecting and enhancing natural ecosystems is a shared responsibility across the dairy value chain. Farmers implement conservation practices that build healthy soils, protect water resources, and increase biodiversity. Meanwhile, processors and supply chain partners support these efforts through research, funding, technical assistance, and sourcing strategies that reward sustainable production. Together, these actions help preserve natural resources, strengthen local ecosystems, and enhance long-term supply chain resilience.

U.S. dairy is advancing circular systems that reduce waste, increase resource efficiency, and generate renewable inputs across the supply chain. Farms and processors are turning food waste and manure into energy, repurposing byproducts into animal feed or new products, and exploring reusable and recyclable packaging. These efforts help reduce costs, conserve resources, and support a more regenerative, resilient dairy system.

Across U.S. dairy, farmers and processors are advancing practices that reflect the principles of regenerative agriculture—which the Innovation Center has defined as an approach that supports cow health and well-being and continuous environmental improvements across multiple areas such as soil health, water quality and quantity, biodiversity, GHG emissions, and air quality, while maintaining and improving productivity and economic viability.

To track progress with accuracy and transparency, U.S. dairy conducts lifecycle assessments (LCAs) that measure environmental impacts across the full value chain. In 2025, U.S. dairy published an updated farm gate LCA in Environmental Science & Technology, measuring emissions from the start of feed production through the point milk leaves the farm. The processor-level LCA builds on the farm gate study to capture emissions through the processing stage. 

Together, these studies provide an updated view of U.S. dairy’s total greenhouse gas impact in 2020—establishing a baseline for measurement. By grounding its work in rigorous science, the Innovation Center and its partners ensure the path forward is both credible and actionable for farmers, businesses, and stakeholders across the global food system.