China Shengmu’s innovation for sustainable organic milkCase study 8 As China’s largest organic dairy company, China Shengmu Organic Milk Limited plays a pioneering role in scaling-up certified organic dairy production. It was one of the first companies in the world to be publicly listed in the organic raw milk industry and remains the only domestic brand certified under both Chinese and EU organic standards.39 Technology innovations Blockchain traceability –Implemented a blockchain-based monitoring system to track herd health, feed sources and milk production. Green production and logistics –Feed optimization: Introduced low-protein diets to reduce nitrogen excretion, paired with precision feeding systems to enhance feed conversion rates. –Renewable energy: Installed 2.5 MW of distributed solar photovoltaic (PV) panels across pastures, powering facilities and electrifying equipment such as feed loaders.Food and water circularity –Smart metering: Deploys real-time water monitoring systems to track usage across 18 ranches, identifying leaks and optimizing irrigation. –Recycling infrastructure: Reduces groundwater extraction, by employing wastewater treatment and filtration systems that recycle water for irrigation. –Manure management: Utilizes strip composting aerobic digestion to convert dairy manure into organic fertilizers, integrated with precise irrigation technology to implement a “water-fertilizer integration” system, maximizing the efficient use of water and fertilizer resources. Outcomes –Emissions reduction: Solar PV installations cut annual CO2 emissions by 3,768 tonnes. –Water efficiency: Achieved an 8% reduction in water consumption intensity from 2023 to 2024. –Operational impact: Scope 1 and Scope 2 GHG emissions intensity decreased by 8.8% from 2023 to 2024. Lessons learned –Integrated sustainability systems (e.g. blockchain, solar, water circularity) achieve measurable emissions and water savings. –However, scaling-up requires significant upfront investment.Source: China Shengmu interviews and materials review. From Scarcity to Solutions: Food-Water Innovation in Asia and the Middle East 26

From Scarcity to Solutions 2025