Arla’s British dairy farmers to receive share of £64m pot as 13th payment

Published 11 March 19

Arla have announced its 13th payment for the 2018 financial year to be an average of 2.3 Euro cents per kilo of milk (2.04ppl), more than double what was paid in 2016 (0.73ppl) and 2017 (0.74ppl). For a farmer producing a million litres per year, the payment could be nearly equivalent to an entire months’ milk cheque at average 2018 prices.

The enhancement payout comes as Arla’s Board of Representatives voted to approve an earlier proposal to pay out the entire annual net profit of Arla Foods to farmer owners. This unprecedented move was proposed in the middle of last year as the co-operative recognised the tough financial situation facing farmers as a result of the summer drought. It was made possible due to Arla’s strong balance sheet position.

The 13th payment is equally distributed to all farmer owners proportionate to the amount and quality of the milk they supplied during the year rather than their equity investment in Arla.

Arla aims to return to its normal policy of retaining a portion of profits for re-investment, so farmers are unlikely to see a 13th payment of this size again.