Arla reports supplementary payment and teases FrieslandCampina

On the day FrieslandCampina announces that it cannot make a supplementary payment on the milk price for 2020, competitor Arla Foods reports that the dairy cooperative pays out €1,75 per 100 kilos of milk to its members. A decision that was taken almost a week earlier, on Wednesday 24 February.

Coincidence or not, Arla is handing out a teasing punch to its competitor on the dairy market. FrieslandCampina reports not being able to make a supplementary payment due to the effects of the corona crisis, among other things, and is therefore under fire from Farmers Defense Force.

Bas Padberg, managing director Arla Foods Netherlands, Belgium and France, from that perspective - unintentionally or not - goes a step further in the statement of the Scandinavian dairy cooperative. "It is important that our dairy farmers benefit from our successes. This supplementary payment reflects the strength of our dairy cooperative."

Performance price stable
According to Arla's statement, the supplementary payment of €1,75 per 100 kilos is 75% higher than the supplementary payment of €1 per 100 kilos that is normally paid out. Due to the strong financial position of the dairy cooperative, Arla's Board of Representatives - the highest body made up of elected members - approved the increased supplementary payment. The dairy cooperative pays out a total of €246 million as supplementary payments to its members in countries such as Scandinavia, the United Kingdom, the Netherlands, Belgium and France.

According to the dairy group, the performance price of Arla for the affiliated members for 2020 remained relatively stable compared to the previous year. In 2020, this will amount to €36,90 per 100 kilos, compared to €36,60 per 100 kilos in 2019. The group turnover of Arla Foods increased to €10,6 billion, compared to €10,5 billion in 2019 and €10,4. 2018 billion in XNUMX.

In Boerenbusiness Milk price comparator for the Netherlands Arla Foods scores moderately in terms of monthly milk price.

Eric the Thrush

Eric is a member of the editorial staff of Boerenbusiness. As a descendant of an arable family, farmer's blood flows through Eric's veins. He considers himself a generalist, but with a preference for economics, trends, markets and marketing.

e.delijster@boerenbusiness. Nl

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