Arla farmers to receive share of £242m dividend

A supplementary payment of 2.2 euro cents/kg (1.8p/kg) is due to be paid out to farmers supplying Arla, following a strong financial year for the dairy co-operative.

It will be the highest dividend pool paid out to producers, up marginally on the previous year at €292m (£241.8m).

Group revenue at Arla Foods lifted slightly on the year to €13.8bn (£11.4bn) in 2024, despite lower milk volumes traded.

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Profit increased by 5.5% to €401m (£331m) in 2024, representing 2.9% of the group’s total revenue.

Arla Foods chairman Jan Toft Norgaard said the strong results last year were a testament to the dedication and skill of its farmer owners and employees.

“Our competitive milk price and financial performance reflect our ability to navigate a complex market landscape effectively and deliver value to our stakeholders,” he said.

UK revenue down

UK revenue was down by 2.9% year-on-year as a result of lower milk volumes and lower prices.

However, branded revenue in the UK grew by 7.6% on the year, with exceptional sales for Arla-branded yoghurts and Lurpak products.

There was also volume growth of 22% year on year for its food service range.

Bas Padberg, managing director of Arla Foods UK, said: “2024 was clearly a year of strong branded growth, which really highlights the power of the portfolio and product mix we have, as shoppers look for quality, nutritious and tasty products.

“As a co-operative, everything we do is to drive the best possible returns for our owners, so through strong collaboration and the support of the farmers, our customers and the whole business, means we can give back to our farmers for the hard work they do in producing our food and investing for the future of the dairy industry.”

Outlook

The dairy co-operative forecasts that consumer purchases will remain stable throughout 2025.

Global dairy supplies are expected to lift in line with higher prices and could lead to increased supplies later in the year.

Chief executive Peder Tuborgh said: “I am delighted that Arla Foods is performing well, and we see a high demand for dairy, and our products in particular, across the globe.

“Our commitment to resilience and adaptability remains unwavering. By harnessing the strength of our cooperative model and focusing on sustainable practices, we are well-positioned to navigate the uncertainties ahead and continue delivering value to our farmer owners and customers.”