Inside Milk
Arla wants to give net profit to farmers
Arla is considering distributing the net profit to the dairy farmers. On the one hand, because the balance sheet looks healthy and on the other hand, because in this way they help livestock farmers who are struggling with financial setbacks as a result of the drought.
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For once, Arla deviates from normal business practices in terms of net profit. This is because the two most important administrative bodies within the Board of Directors and Board of Representatives agreed to the proposal to distribute the profits to the livestock farmers. This will take place when the annual figures for 1 have been approved.
Extreme drought
"This summer's drought was extreme and that calls for extreme measures," said Jan Toft Norgaard, chairman of Arla. "Since the board is satisfied with the positive development of the balance sheet, this proposal is made possible." The proposal will be discussed again at the meeting in October, after which a final decision will be taken in February 2019.
In total, this amounts to €285 million to €310 million. This equates to an amount of 2,3 to 2,5 euro cents per kilo of milk. If this compensation actually takes place, it will coincide with the normal subsequent payment.