BEGA Cheese is offering substantial incentives for its suppliers to farm more sustainably and to invest in growth.
The NSW-based company announced this morning that it will invest $25 million over the next three years into the incentive programs.
Suppliers will receive a three cents per litre incentive to meet sustainability targets, with another two cents per litre available for growth projects.
"Customers are increasingly placing an emphasis on environmental sustainability and farming practices," Bega Cheese chief executive Aidan Coleman said.
"The increasing demand for sustainably produced dairy products will underpin future dairy development and is a core reason for this funding injection".
"It is important that dairy companies support their farmers in making ongoing gains."
Suppliers will today receive documentation detailing the incentives.