In today's dynamic dairy landscape, exploring new revenue streams beyond traditional milk sales is an important financial strategy, especially as sustainability initiatives offer new income opportunities. Ruminants play a vital role in the ecosystem through the natural biogenic carbon cycle and converting byproducts into nutritious food. The U.S. dairy industry has excelled at addressing emissions intensity (greenhouse gas (GHG) emissions per unit of solids-corrected milk), demonstrating a 38% decrease over the past 34 years1. Building on this history of sustainable practices, the industry can leverage these efforts to generate alternative income streams while continuing to improve and share its sustainability story.
Reductions = Revenue
The food supply chain, including dairy farms, can contribute over 70% of a food company's emissions2,3, prompting these companies to seek emissions reduction solutions in response to environmental regulations, consumer demand, and investor pressure. The main sources of a dairy farm's GHG emissions are feed production, enteric fermentation, manure management, and energy consumption. Some dairies have already received incentives for reducing emissions through cropping practices and manure digesters. New strategies, such as feed ingredients targeting enteric methane (which comprises roughly 35% of total on-farm emissions4), present an appealing approach for both producers and food companies. These feed-based strategies offer the benefit of permanent, irreversible emission reductions through daily management, typically require less upfront capital investment than other methods, making them accessible to farms of all sizes and easily integrated into existing feed rations.
A ready now solution: Bovaer®
Bovaer is a feed ingredient containing 3-nitrooxypropanol (3-NOP) labeled for the reduction of methane emissions in lactating dairy cattle. Bovaer is one of the most scientifically researched and recognized feed ingredients for methane reduction with more than 85 peer-reviewed studies. Efforts from food companies’ strategic initiatives to incentivize GHG reductions within their supply chain can create a current return of approximately $20 per lactating dairy cow per lactation from feeding Bovaer.
Researchers at the University of Wisconsin5 calculated an income over feed cost of $-0.35 per head per day, incorporating a product cost of $0.495 per head per day. This indicates Bovaer potentially added $0.14 per head per day of value not accounting for emissions reduction revenue.
Therefore, it can be concluded that producers can expect a positive net return from emissions reduction revenue with no negative impact on productivity. The process of realizing value from Bovaer involves:
- Implementing: Work with your milkshed or local Elanco rep and nutritionist on implementing Bovaer in your ration
- Measuring: Use UpLook™, Elanco’s measurement tool that quantifies on-farm GHG emissions reductions, to enter on-farm data needed to quantify your reductions
- Monetizing: Complete a third-party verification process to verify your farm’s avoided emissions
By aligning the food industry's demand for emissions reductions with available solutions, we can create mutual value through a diversified revenue stream, enabling a strategic advantage for your dairy.
To learn more, visit https://farmanimal.elanco.com/us/dairy/bovaer.
About Elanco
Elanco Animal Health Incorporated is a global leader in animal health dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and pets, creating value for farmers, pet owners, veterinarians, stakeholders and society as a whole. With 70 years of animal health heritage, we are committed to breaking boundaries and going beyond to help our customers improve the health of animals in their care, while also making a meaningful impact on our local and global communities. At Elanco, we are driven by our vision of Food and Companionship Enriching Life and our Elanco Healthy Purpose™ sustainability pillars – all to advance the health of animals, people, the planet and our enterprise. Learn more at www.elanco.com.
The label contains complete use information, including cautions and warnings. Always read, understand and follow the label and use directions.
Caution:
Do not feed undiluted. For use in feed for lactating dairy cows only.
Directions for Use: Thoroughly mix Bovaer 10 into a total mixed ration at 540-720 g/ton of complete feed (100% dry matter basis) to provide 27.2-36.3 mg 3-nitrooxypropanol per pound (60-80 mg per kilogram) of dry matter intake. Feed continuously to lactating dairy cows.
1 Source: UN FAOSTAT, available at: https://www.fao.org/faostat/en/#data/
2 https://www.nestle.com/sites/default/files/2023-12/nestle-net-zero-roadmap-en.pdf. Accessed October 21, 2024.
3 https://www.thehersheycompany.com/en_us/home/sustainability/goals-and-progress.html. Accessed October 21, 2024.
4 Thoma, G. et al. 2013. “Greenhouse gas emissions from milk production and consumption in the United States: A cradle-to-grave life cycle assessment circa 2008.” Int. Dairy J. 31:S3-S14.
5 Pupo, M. et al. 2025. “Effects of feeding 3-nitrooxypropanol for methane emissions reduction on income over feed costs in the United States.” Journal of Dairy Science TBC. https://doi.org/10.3168/jds.2024-25502.
Bovaer is a trademark of dsm-firmenich. UpLook, Elanco and the diagonal bar logo are trademarks of Elanco or its affiliates. ©2025 Elanco or its affiliates. PM-US-25-0669(2)
