We are part of the solution to the global climate challenge

Sustainability is high on the strategic agenda at Arla, and IT is a very important element when putting strategy into action throughout the concern’s value chain. CIO Torben Fabrin’s mantra is that IT can and should support and drive Arla in a greener direction.

A quick look at Arla’s 2026 strategy is enough to understand that the sustainability agenda has reached top management level and is influencing the direction of strategic development.

– Cows emit large amounts of CO2 equivalents, so we can’t deny that we make an impact on the climate. But we’re also part of the solution to global climate challenges. That’s why our focus on sustainability permeates everything we do, says Torben Fabrin, Arla’s CIO.

IT and digitalization will play a key role here, he claims:

– Digitalization being an accelerator for development is a strategic goal. We focus constantly on how we can exploit new solutions and technologies throughout our value chain, from digitizing our supply chain and paperless production to robots at our dairies.

Sustainability and business go hand in hand

The use of data analytics is key to driving the green transition. Arla gathers data in its quality management programme, ‘Arlagården’, with the aim of supporting more sustainable milk production. Farmers use an app to check a range of parameters, such as animal feeds, cleanliness, space and general animal health. By comparing data from over 9,400 farmers, Arla can analyze patterns and links between animal welfare and milk production.

– For example, we can see that milk production increases in line with better cow health. Using that knowledge, we’ve developed best practice guidelines which we share with the farmers. Consequently, animal welfare, sustainability and commercial interests come together much better, states Fabrin.

In the long run, he identifies two key tasks for Arla’s IT organization: Firstly, retaining and developing the concern’s key markets, such as Europe. Fabrin is very concerned with how new digital channels and, for example, more online sales can be utilized to accelerate growth. Secondly, providing digital support for the development of emerging markets such as Africa and Asia.

IT solutions evaluated in terms of sustainability

The challenges Arla is encountering in Asia, for example, are completely different to those on the home markets, something that is reflected in IT. Because counterfeit products are common – even on the dairy product markets – digital solutions are needed to guarantee, for example originality, enabling the consumer to scan a carton to see its journey from cow to supermarket.

– Blockchain is a hot topic right now, but although blockchain technology is perceived by many as being essential to track a product’s origins, that’s not the case. In fact, Arla is a little wary of blockchain, as even though the technology is rapidly evolving, we can’t ignore the fact that it has a considerable impact on the climate.

That conclusion (and wariness) are symptomatic of how Arla evaluates new IT solutions:

– We believe that we cannot work with IT and data without impacting the climate, which is why climate considerations also have to be part of the business case when we decide which digital solutions to focus on, explains Fabrin.

Protecting culture

In an organization in which digital solutions permeate the entire value chain, being able to constantly attract new skills is essential. Arla is finding that the job market is already overheating, especially within IT:

– The competition for talent able to support and drive digitalization is tough. And I believe we’ve only seen the tip of the iceberg so far. So we’re under pressure on parameters such as flexibility and pay, and we can clearly see how candidate expectations are changing.

Arla has made an active decision to put its corporate culture first in the long run:

– We believe that if we exclusively work remotely, we could risk losing some of our culture. In fact, we do meet candidates who only want to work from home, but that’s not something we can or want to accommodate, Fabrin states.

Digitalization has to support new ways of working

But even though a pure remote-working model will probably not be seen at Arla, the company has taken new working routines and methods to heart. The mantra ‘the power of the mix’ applies in particular to office environments.

– We believe that there is still massive value in coming to work, discussing things face-to-face and chatting over a coffee. But we can also see a lot of benefit for individual workers in the flexibility and freedom that working from home does give. The rule of thumb for us is most days at the office, but it’s up to the individual departments to do whatever works for them, says Fabrin.

That’s only possible when the digital setup is in place and geared to supporting the new hybrid model:

– When we hold a digital meeting instead of a physical one, we are actually making considerable demands of the right tools and setup, so that our people have the best facilities for being able to work digitally. We have to support the new working culture, and create inclusion in the online space, concludes Fabrin.

Torben Fabrin’s best tips for CIOs in 2022

1. Find a model for mixing online and offline work that fits with your corporate culture, and exploit the opportunities offered by technology to support the digital experience, which will enable you to transfer strengths from the physical environment to the digital.

2. Data analytics has vast potential, but to realize it, you have to dare to experiment. It’s important to create a space in which your people can be open minded and develop creative ideas.

3. IT can and must contribute to the sustainability agenda, and it’s imperative to get started. We have a responsibility to get digitalization broadly implemented into the business.

Digital facts about Arla

• IT is a link across the value chain, and key to Arla’s operations. IT systems critical to operations are endemic throughout production, which runs 24/7/365, and for which breakdowns are expensive, due to the perishable products. IT is therefore also a highly prioritized business area.

• Planning how milk can be used optimally is a gigantic jigsaw puzzle. How should it be used and in what amounts for the various dairies? How much will be made into butter, cream, cheese or milk powder? And on which markets should it be sold? Automation plays a major role in the organization’s end-to-end planning as it seeks to optimise its processes to the maximum.

• One of Arla’s big digital investment areas is in robots and self-propelled units, used at its super dairy in London for example. Robots are a key element of how the group works with digitalization and rationalization throughout the value chain to free up resources for other key tasks.

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