Board of Representatives decision: 270 million euros to farmer owners
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- Published:
- 29 February 2024
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2.07 EUR-cent per kilogramme of milk in supplementary payment for 2023 will be paid to famer owners. This decision has been taken by the Board of Representatives
At yesterday’s Board of Representatives meeting they approved the annual report and decided that a total of 270 million euros of the company's annual net profit will be paid to farmer as supplementary payment.
This corresponds to 2.07 EUR-cent/kg milk, including interest on individual contributed capital. Well above the guaranteed level in the retainment policy of 1.5 EUR-cent/kg.
The retainment amounts to 0.84 EUR-cent/kg, split between 0.31 EUR-cent/kg as individual capital and 0.53 EUR-cent/kg as common capital. The common capital is consolidated in the company as equity and for future investments.
The amount is adjusted for interest on contributed capital and the effect of some farmer owners having reached the ceiling for individual capital.
The decision is in line with the Board of Directors proposal and was voted for with 163 yes and 13 no.
Half-year payment in September
Arla’s retainment policy states a guaranteed supplementary payment of 1.5 EUR-cent/kg, provided a net profit of at least 2.8 %, and a total retainment (individual and common) of maximum 1.0 EUR-cent/kg.
In September, an interim supplementary payment was made corresponding to 1 EUR-cent/kg milk delivered in the first 6 months of the year. On the total milk volume for the year this corresponds to 0.5 EUR-cent/kg milk.
The individual farmer owner payment
For the individual farmer, the exact amount of the supplementary payment relates to the constituents value of the milk supplied during 2023. The supplementary payment you received in September will be deducted from the full year supplementary payment.
The supplementary payment will be paid out 15th March 2024.
Arla Foods is an international dairy company owned by more than 8,400 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world's largest manufacturer of organic dairy products.
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