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How to decarbonize dairy

Written by Kyoto Group | 30. okt. 2026, 10:32:28

If it's your job to convince management, here's your guide to getting the fossil fuel out of your milk, before it sours your margins.

What if every bag of milk powder came with a carbon price tag? Increasingly, it does, because most of the heat that turns milk into powder, cheese and long-life cartons still comes from burning gas. Europe's dairies process around 150 million tonnes of raw milk a year, and the heat behind that processing pumps out roughly 20 million tonnes of CO₂ annually. The question is no longer if that has to change, but how fast.

As a plant, energy or project manager at a dairy, you're caught in a familiar squeeze. On one side: ESG targets, tightening EU rules, retail customers demanding lower-carbon ingredients, and gas prices that lurch every time the world gets nervous. On the other: management that wants clean heat and protected margins, with no disruption to a production line that runs around the clock. Add a thin bench of in-house energy-market expertise and no obvious path forward, and every decision starts to feel like it carries years of consequences.

It does. So let's break it down. 

 In a rush? Read the 4-step formula to decarbonize your dairy->

 

The first question to ask: Do you have to decarbonize?

To cut through the complexity, we sat down with Elena Davydova, Business Development Manager at Kyoto Group, who works with industrial producers on moving off fossil-fuelled process heat.

– It might seem unnecessary to even ask whether a dairy has to decarbonize, she says.

– But it's an eye-opener.

She points to a gap: between the expertise it takes to pull off a profitable energy transition, and the business-as-usual most dairies have run for decades. In many plants, a gas boiler still sits at the centre of the site, quietly firing the evaporators, the dryers, the pasteurizers and the CIP loops.

– The real question starts there, Elena says. – If you answer "yes" to decarbonization, follow up with: What's it going to take? What are the risks and benefits of acting now versus waiting? Could you postpone it for, say, five years?

– So the honest answer is: decarbonize now?

– Stick with gas and you'll face rising CO₂ costs and growing pressure from every direction, she says. Retailers and food brands are pushing carbon requirements down their supply chains, the product carbon footprint of an ingredient is now something buyers ask about. Dairies that can't answer risk losing shelf space and contracts.

– So the question quickly becomes: "Do I want to keep supplying the customers I have in five years?" And of course you do.