{"id":13409,"date":"2026-08-01T17:32:00","date_gmt":"2026-08-01T17:32:00","guid":{"rendered":"https:\/\/dairylando.com\/?p=13409"},"modified":"2026-08-01T17:34:22","modified_gmt":"2026-08-01T17:34:22","slug":"sustentabilidad-sin-red-cuando-la-innovacion-la-termina-pagando-el-tambo","status":"publish","type":"post","link":"https:\/\/dairylando.com\/en\/sustentabilidad-sin-red-cuando-la-innovacion-la-termina-pagando-el-tambo\/","title":{"rendered":"Sustainability without a safety net: when innovation ends up being paid for by the dairy farm"},"content":{"rendered":"
\"\"<\/figure><\/div>\n\n\n\n

Nestl\u00e9 has once again placed sustainability at the heart of its strategy. Its CEO in Argentina stated that regenerative agriculture will be key to achieving the company's environmental goals.1 <\/sup>and claimed that \u201cthe rules should be identical for all\u201d<\/a>The proposal is reasonable, but it contrasts with a precedent that the dairy industry should not forget: the discontinuation of its A2A2 and organic milk programs.<\/p>\n\n\n\n

In 2021, the company announced an investment of over US$16.5 million to develop both segments. It supported 17 dairy farms for several years, presented the products as a response to new consumer demands, and highlighted their export potential. Purchases of A2 milk ceased in April 2024 because, according to the company itself, demand did not meet expectations. In 2026, it was the turn of organic milk: as of October 1st, it will be priced at the conventional rate. This experience provides evidence that is often lacking in surveys. There may be consumers interested in organic, A2, or products with a lower carbon footprint, and even some willing to pay more. But that doesn't mean they are enough, that they buy regularly, or that they accept the price necessary to sustain a segregated supply chain. Surveys measure stated preferences; sales continuity reveals effective demand<\/strong>.<\/p>\n\n\n\n

Up to this point, one could speak of a commercial innovation that failed to reach scale. The more serious problem arises when considering who bears the cost of the failure. Producing organic milk is not simply a matter of changing a label. It requires modifications to feed, rotations, input use, health management, stocking rates, record-keeping, and certification. Regulations mandate a system different from the conventional one. and a transition that normally requires at least two years<\/strong>. The result can be lower production per cow and per hectare, or at least less flexibility to respond to changes in prices and weather. This system was viable because it received a bonus of nearly 90% above the reference price.<\/p>\n\n\n\n

The industry can cancel a commercial line on a specific date. The dairy farm cannot rebuild its pastures, reserves, stocking rate, productivity, and cash flow on that same date. The industry's exit strategy is administrative; the producer's reconversion is biological, agronomic, and financial. It can take many months and, without working capital, push a company to the brink of insolvency.<\/strong>. A2 milk has a different production structure: it doesn't necessarily reduce production, but it requires genetic selection, herd identification, traceability, and segregation. In both cases, the same risk exists: making investments that are only worthwhile as long as a specific buyer remains.<\/p>\n\n\n\n

This isn't about denying innovation or environmental goals. Nor is it about equating this case with Sri Lanka, where an abrupt fertilizer ban exacerbated a much broader food and economic crisis. The common lesson is different: production transformations shouldn't be driven forward without first validating their scale, viability, and exit mechanisms. If industries want dairy farms to adopt regenerative practices or reduce their carbon footprint, they should offer contracts aligned with the biological cycle of production: long terms, predictable premiums, investment amortization, phased exit, and financing for the conversion.. Sustainability cannot consist of the company capturing the environmental attribute while the producer assumes all the risk.<\/strong>. To be genuinely sustainable, it must also financially support the dairy farm that makes it possible.<\/p>\n\n\n\n

1 <\/sup>The Nation Supplement Field, August 1, 2026<\/a><\/em><\/p>\n\n\n\n

\"\"<\/figure><\/div>","protected":false},"excerpt":{"rendered":"

Nestl\u00e9 volvi\u00f3 a colocar la sustentabilidad en el centro de su estrategia. Su CEO en la Argentina sostuvo que la 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volvi\u00f3 a colocar la sustentabilidad en el centro de su estrategia. Su CEO en la Argentina sostuvo que la […]","_links":{"self":[{"href":"https:\/\/dairylando.com\/en\/wp-json\/wp\/v2\/posts\/13409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dairylando.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dairylando.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dairylando.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dairylando.com\/en\/wp-json\/wp\/v2\/comments?post=13409"}],"version-history":[{"count":3,"href":"https:\/\/dairylando.com\/en\/wp-json\/wp\/v2\/posts\/13409\/revisions"}],"predecessor-version":[{"id":13414,"href":"https:\/\/dairylando.com\/en\/wp-json\/wp\/v2\/posts\/13409\/revisions\/13414"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dairylando.com\/en\/wp-json\/wp\/v2\/media\/13410"}],"wp:attachment":[{"href":"https:\/\/dairylando.com\/en\/wp-json\/wp\/v2\/media?parent=13409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dairylando.com\/en\/wp-json\/wp\/v2\/categories?post=13409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dairylando.com\/en\/wp-json\/wp\/v2\/tags?post=13409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}