Tasmanian Dairy Leads Charge with World's First Eco-Milk

A Tasmanian dairy, Ashgrove, is revolutionizing the milk industry by introducing Eco-Milk, produced by cows fed with seaweed to reduce methane emissions. The innovative product, currently sold in supermarkets, aims to lower environmental impact and test consumer willingness to pay a premium for eco-friendly dairy products.

A Tasmanian dairy is making headlines by supplying supermarkets with the world's first branded milk produced by cows fed with a seaweed additive to reduce harmful methane emissions.

According to the United Nations, the livestock industry contributes to around 30% of global methane emissions. While seaweed and other feed additives can effectively cut down these emissions, their high costs have impeded widespread adoption. Since February, Ashgrove, a family-owned dairy in Tasmania, has been feeding a fifth of its 500 cows an oil containing seaweed extract that curtails methane released during digestion, as per co-owner Richard Bennett.

These cows generate approximately 10,000 liters of milk daily, a portion of which is branded as "Eco-Milk" and distributed across Tasmania, including at Australia's leading supermarket chain, Woolworths. "We're achieving about a 25% reduction in methane," Bennett reported.

Eco-Milk is testing whether consumers are willing to pay more for environmentally friendly dairy products. A two-liter bottle is priced at A$5.50 ($3.67), twenty-five cents more than regular full cream milk. Bennett commented that sales are encouraging, but the company has yet to decide on scaling the project.

Producers of methane-reducing feed additives have invested substantial amounts to produce enough for millions of animals. Last year, French cheese maker Bel Group announced it would use additives to feed about 10,000 dairy cows in Slovakia. Other companies such as JBS, Danone, and Fonterra have explored similar initiatives but have not yet implemented them on a large scale.

The additive used by Ashgrove comes from a Tasmanian firm called Sea Forest. CEO Sam Elsom expressed hope for Eco-Milk's success. "If these products aren't supported, the industry will revert to old practices," he said. "And the pace of decarbonization will significantly slow down."

($1 = 1.5006 Australian dollars)

(With inputs from agencies.)