Denmark Mandates Dairy Farmers to use Feed Additives from January 2025 to Battle Global Warming
Summary
Mandatory Additives Begin in 2025: From January 2025, all Danish dairy farms with more than 50 cows must use methane-reducing feed.
New Agricultural Emissions Tax: Starting in 2030, farms exceeding emissions targets will pay a marginal tax, starting at 300 DKK (€40) per ton and rising to 750 DKK (€100) by 2035.
Preparing market entry of Lome®: We are preparing our methane-reducing feed additive Lome® for market entry in Denmark, after regulatory approval, to support beef and dairy farmers with a cost-efficient and sustainable option to meet Denmark's ambitious climate goals.
Even before the Green Tripartite agreement was signed last week, Denmark had already agreed to make methane-reducing feed mandatory on its dairy farms. Now, with the historic signing of the Green Tripartite, Denmark has doubled down by committing to an agricultural emissions tax due to be introduced in 2030. Overseeing these massive changes will be a brand-new ministry, the Green Tripartite Ministry, dedicated to transforming the Danish agricultural sector.
Danish farmers have already registered their commitment to receive subsidies for 2025. The farmers who are signed up now are guaranteed to have their additive costs fully refunded in 2026.
How Will Denmark Rollout Additives?
A report released in November 2024 details how the rollout of additives in Denmark will work. Under the Green Tripartite Agreement, any farm with more than 50 non-organic dairy cows must use methane-reducing feeds from January 2025. Farmers currently have two options, but with more additives expected to be added over coming months and years as more feed additives in development receive regulatory approval:
High-Fat Feed: At least 48 g of fatty acids per kg of dry matter (DM) in cows’ rations.
3-NOP Feed Additives: A minimum of 60 mg of 3-NOP per kg of DM for at least 80 days a year. 3-NOP is currently marketed as Bovaer® by dsm-firmenich.
Both of these options have been rigorously tested and proven to be safe for animals and humans. The mandated level (48 g/kg DM, equivalent to ~4.8% fat) falls within safe and established limits for dairy cattle. 3-NOP is a scientifically proven and extensively studied feed supplement that significantly reduces methane emissions from cows while ensuring safety for animals, humans, and the environment. It is approved by leading regulatory bodies such as the European Commission and the UK Food Standards Agency, and over 150 studies confirm its safety and efficacy. 3-NOP breaks down naturally in the cow’s digestive system into harmless compounds and is completely metabolized, meaning it does not enter milk or meat consumed by people. Used in 68 countries, this innovative solution allows farmers and food producers to reduce their climate footprint without compromising animal health, productivity, or food quality.
Farmers can also go beyond the baseline requirements. If they feed 3-NOP for longer than the required 80 days, they can apply for additional subsidies to cover the costs. This provides a clear incentive for farmers who want to maximize methane reductions and further contribute to Denmark’s climate goals.
Farmers have already started registering their strategies and preparing the necessary documentation, such as feed plans, invoices, and recipes, to comply with the regulations. Danish authorities are closely overseeing the rollout, with a planned 5% of participants to be subject to unannounced inspections.
To offset costs of using additives, farmers can apply for government compensation. While payouts won’t begin until early 2026, the system incentivizes compliance and proactive efforts to go beyond the minimum requirements. However, all subsidies - whether for mandatory compliance or voluntary year-round use - come from the same funding pool, which Landbrug & Fødevarer, the Danish Agriculture & Food Council, fear could create challenges if demand exceeds supply (article available here).
How Will the Tax Affect Agriculture in Denmark?
The Green Tripartite agreement introduces a marginal tax on livestock emissions that exceed reduction targets, creating a strong incentive for farmers to cut methane. Pork and dairy producers won’t pay taxes on 60% of the average emissions per animal. This baseline provides a buffer and encourages gradual improvements without immediate penalties for all emissions. If farmers manage to cut their emissions by 40% of the current average (or more), they won’t pay any tax at all. This is because their emissions would stay within the untaxed threshold.
For those who exceed the targets, the tax will start at 300 Danish kroner (€40) per ton of carbon dioxide equivalent in 2030, rising to 750 kroner (€100) by 2035. This increasing rate puts serious weight behind the push for emissions reductions while ensuring farmers have a clear path to compliance.
Importantly, all revenue from the tax will go into a fund dedicated to helping producers across the board lower their emissions, ensuring the system supports sustainable farming for everyone.
How Does Lome® Fit In?
We’re preparing our feed additive Lome® for use in Denmark, where it can deliver a simple implementation at a high efficiency at a low cost.
Strong competition of methane-reducing feed additives from multiple biotechnology companies benefits not just the Danish government but the entire agricultural sector as it lowers the cost of reducing emissions, and creates green jobs. The development of the methane-reducing additive industry is crucial to making these solutions more accessible and scalable for farmers everywhere. Denmark is showing great leadership in paving the way for companies like Volta Greentech to accelerate the development of methane reducing feed additives to support farmers in battling warming. Major actors, including Austria and Landbrug & Fødevarer, have raised concerns about the current lack of competition in the methane-reducing additive space in Denmark, and we see the market introduction of Lome® as a key solution to address this.
Denmark’s Targets
Denmark aims to cut agricultural emissions by 55% to 65% by 2030, with its new methane-reducing feed policy expected to deliver a 27% reduction in methane emissions from dairy cows. These measures mark a big step forward and one that could encourage other countries to adopt similar measures. Lome®, upon market entry, will be well-positioned to support Denmark in meeting these targets by offering farmers a cost-effective, high-efficacy option to further reduce emissions.
About Volta Greentech
Volta Greentech’s mission is to battle global warming, using feed additives. At Volta Greentech, we develop methane-reducing feed additives for cows, along with supportive solutions. Volta Greentech is a trusted partner for implementing methane-reducing feed additives effectively. We develop and manage comprehensive systems for tracking and reporting, providing a measurable and cost-effective solution for emission reduction using Lome®, Bovaer® or Seaweed. We work hand in hand with our partners to accelerate sustainability.
Read more at www.voltagreentech.com
