Board of Representatives approves highest-ever supplementary payment of EUR 292 million
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- 27 February 2025
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The Board of Representatives yesterday approved a supplementary payment of 2.2 EUR-cent/kg of milk (including interest on individual contributed capital) to be paid to famer owners for the milk supplied during 2024.
A total of 292 million euros of Arla’s annual net profit – the highest amount ever – will be paid to farmer owners as supplementary payment, following a decision by the Board of Representatives at their meeting today.
The decision is in line with the Board of Directors proposal and was voted for with 180 votes in favor and 1 vote against.
The supplementary payment corresponds to 2.2 eurocent/kg milk, including interest on individual contributed capital.
“I am delighted that the Board of Representatives decided to pay out the highest supplementary payment ever to our farmers. It demonstrates Arla’s strength and competitiveness and is crucial for our farmers to be able to continue to develop their farms, invest in their transition to more sustainable milk and continue local food production, says Jan Toft Nørgaard, Chair of Arla.
Retainment amounts to 0.84 eurocent/kg, split between 0.31 eurocent/kg as individual capital and 0.53 eurocent/kg as common capital.
The amount is adjusted for interest on contributed capital and the effect of some farmer owners having reached the ceiling for individual capital.
Half-year payment in September
The payment is well above the guaranteed level defined in Arla’s retainment policy; 1.5 eurocent/kg, provided a net profit of at least 2.8 %, and a total retainment (individual and common) of maximum 1.0 eurocent/kg.
In September 2024, an interim supplementary payment was made corresponding to 1 eurocent/kg milk delivered in the first 6 months of the year. On the total milk volume for the year this corresponds to 0.5 eurocent/kg milk.
The remaining 1.61 eurocent/kg milk, together with interest on individual capital instruments corresponding to an amount of 0.13 eurocent/kg milk, will be paid out in March 2025.
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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