Scandinavian dairy co-operative Arla Foods will offer farmers a 4 per cent increase in their milk payments if they move away from genetically modified feeds.
Director Theis Brogger said central European consumers, particularly in Germany, were willing to pay a premium for GM-free products.
«We are not discounting the value of GM in a different context,» he said.
«We are not saying that one type of milk is necessarily better than the other but we are, as a big global dairy company, always looking to be able to supply to the different needs and demands that are in the market.
«This is a new one.»
Arla imports Lurpak butters and Costello cheeses into Australia.
The company is paying European farmers around 26 euro cents a litre (37c/l).
About 3000 of Arla’s existing Swedish farmers already supply the company with a GM-free milk.
The company expects a further 1000 farmers from central Europe would contribute to the program.
Arla’s farmers, on average, supply around three million litres of milk to the company annually.
Mr Brogger said he expected the one euro cent incentive would be enough for farmers to offset higher feed costs.
«It’s just really at a low, as you are seeing in Australia.
«I think that anything that dairy companies can do to offer opportunities for some farmers to increase their income is being welcomed with open arms right now.»
Source: ABC
Link: http://www.abc.net.au/news/2016-09-14/arla-gm-free-milk/7700548