British Arla dairy farmers to receive £64m year-end bonus
It comes after the cooperative announced it would deviate from its usual retainment policy after 2018’s weather events.
Alex Black
Arla has announced British owners will receive £65 million as their year-end bonus, with the bonus for all of its European farmers at £245m.
Last night (February 28), Arla’s board of representatives approved the proposal to pay out the entire annual net profit of Arla Foods to its farmers owners.
Arla distributes its profits between its owners in a supplementary period every year, but this was usually allocated as a 13th payment and retainment.
Weather
But with as strong balance sheet and farmer owners still feeling the effect of last year’s drought, Arla has deviated from its usual policy.
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Farmers will receive 2 pence or 2.3 euro cents per kilo of milk. The 13th payment is equally distributed to all farmer owners, proportionate to the amount and quality of milk they supply rather than on their equity investment in Arla.
Arla Chairman, Jan Toft Nørgaard, said: “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.”
Arla CEO Peder Tuborgh said."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.”
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