True price for consumers: Milk
A dairy product we almost all drink in our own variation: with our cornflakes, in our cappuccino or just as is. What is the true cost that comes with milk?
Milk: TEEB Netherlands
One of the hidden costs of production in the dairy industry is the cost of Green House Gas (GHG) externalities. The cost of GHG externalities from milk production in the Netherlands is $5.40 per kilogram of protein.
- Location: The Netherlands
- Year: 2017
- Description: The largest producer countries of animal protein such as the Netherlands and Brazil and countries with vulnerable and rich ecosystems such as Indonesia and Tanzania. A variety of production systems and products, from pastoralism to intensive agriculture and beef, poultry and milk products.
Milk: Tony’s Chocolonely The Netherlands and New Zealand
Conventional and biological milk powder from the Netherlands and New Zealand were compared for this study.
Biological milk powder from the Netherlands has the lowest environmental cost of €6.40, which is lower than conventional milk powder from the Netherlands (€ 9.05). Comparatively, Dutch milk powder (both conventional and biological) have lower environmental costs than milk powder sourced from New Zealand.
- Location: The Netherlands and New Zealand
- Year: 2017
- Description: True Price’s report to evaluate the external costs of a chocolate bar required an evaluation of additional ingredients. Therefore, True Price calculated the external environmental costs of milk powder, which is one of the main ingredients in Tony’s chocolate bars.
Milk (OatWell®): DSM
Results show that the positive environmental and social effects are substantially higher than the environmental costs associated with OatWell®’s value chain. Producing OatWell® incurs environmental costs, mainly in water, energy and land use. A part of that costs is compensated because OatWell® replaces wheat that no longer has to be produced. Further significant environmental benefits are expected as a result of reduced food production, since research suggests that people eat considerably less when OatWell® is part of a healthy diet. The final effect is the expected social and economic benefit of reduced cardiovascular diseases, a specific health benefit of OatWell®.
- Location: The Netherlands and Sweden
- Year: 2015
- Description: In collaboration with Royal DSM we carried out a pilot study on OatWell®. Together we quantified the environmental costs and benefits associated with OatWell®, by assessing its impact on natural and social capital and assigning an economic value to the environmental and social impacts across the value chain for specific product and market applications. This comprehensible presentation of combined environmental and social impacts allow comparison with economic costs, and encourages thinking about business models that capture societal value.
