FDBusiness.com

British Dairy Farmers to Benefit From a £64 Million Share of a £245 Million Arla Foods Pot

 Breaking News
  • Orkla Moves into New HQ Orkla, the Nordic region’s largest branded consumer goods company, has moved into new headquarters in Oslo, Norway. The move marks a new era in the company’s history, with Orkla’s businesses in Norway now assembled under one roof. More than 900 Orkla employees are based in the new office premises. “The building we are now moving into is [...]...
  • New Heads For Carlsberg Group’s European Businesses Lars Lehmann has been appointed as Executive Vice President (EVP) for Carlsberg Group’s Eastern European region and as a member of the global brewer’s Executive Committee (ExCom). He will replace Jacek Pastuszka, who will change from EVP Eastern Europe to Western Europe, while current Western Europe EVP Chris Warmoth reverts to Group Strategy as EVP. Effective [...]...
  • Rising Prices Drive Irish Grocery Sales Growth The latest figures from Kantar Worldpanel show the Irish grocery market grew by 3.5% in the 12 weeks to 24 February 2019, putting the sector on a solid footing as the UK finalises preparations to leave the EU. After a prolonged period of deflation, an upward trajectory in grocery prices is making a significant contribution [...]...
  • New EU Rules to Ensure Fairness in the Food Supply Chain The European Parliament has approved a new set of EU rules that will blacklist practices, such as late payments for delivered products, late unilateral cancellations or retroactive order changes, refusal by the buyer to sign a written contract with a supplier and the misuse of confidential information. Threats of retaliation against suppliers, for instance delisting [...]...
  • Mondelēz International Invests in Prebiotic Functional Snacks Mondelēz International has taken a minority investment in Uplift Food, a US-based early-stage start-up focusing on prebiotic functional foods. This is the first venture investment the company is making as part of SnackFutures, the company’s innovation and venture hub aimed at unlocking snacking growth opportunities around the world. A key pillar of the company’s consumer-centric growth [...]...

British Dairy Farmers to Benefit From a £64 Million Share of a £245 Million Arla Foods Pot

British Dairy Farmers to Benefit From a £64 Million Share of a £245 Million Arla Foods Pot
March 05
10:17 2019

Arla Foods, the UK’s biggest farmer-owned dairy company, has announced that its British owners will receive a total of £64 million (€70 million) as their 2018 year-end bonus from a European wide pay-out of £245 million (€290 million). The payment was agreed by the company’s Board of Representatives, which is almost wholly comprised of elected farmer owners and includes 23 British farmers.

In the vote Arla’s Board of Representatives approved the proposal to pay out the entire annual net profit of Arla Foods to farmer owners. Once a year, Arla distributes its profits equally between all of its farmer owners in its so-called supplementary payment. Normally, the profit is allocated as a 13th payment and retainment, however, a strong balance sheet has enabled the board to deviate from Arla’s retainment policy and propose that representatives pay an amount on average of 2.3 Euro cents, per kilo of milk, (equating to an average of 2.0 pence per kilo) to farmer owners.

“As a farmer-owned company, we are aware that this summer’s drought in Europe was extraordinary and affected the feed situation for many of our members. We are satisfied with the positive result of the company’s balance sheet, which makes it possible for us to pay out the entire profit,” says Arla’s Chairman, Jan Toft Nørgaard.

“Our balance sheet has improved significantly over the past five years. Our financial goals will remain within the target ranges, provided that the representatives intend to return to the normal retainment policy after 2018,” says Arla’s CEO Peder Tuborgh.

The 13th payment is equally distributed to all farmer owners; proportionate to the amount and quality of milk they supply rather than based on their equity investment in Arla. For the owners, the decision to pay out the entire net profit means that there will be a 13th payment averaging 2.3 Euro cents (2.0 pence) paid for every kilo of milk delivered by each farmer during 2018.

Arla Foods is a global dairy company and co-operative owned by 11,200 dairy farmers with circa 2,500 of whom are British.

Dating back to 1881, Arla’s purpose is to secure the highest value for its farmers’ milk, while creating opportunities for their growth. With production facilities in 11 countries and sales offices in a further 30, Arla is the world’s fifth largest dairy company and largest supplier of organic dairy products.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements