Dairy giant Arla Foods has announced that its board of representatives has voted in favour of a proposal to pay its entire annual net profit to farmer-owners on 8 March.
The cooperative will pay a total of €290 million, where each farmer will receive 2.3 Euro cents for every kilo of milk delivered to Arla in 2018.
'Drought In Europe'
Commenting on the decision, 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."
In August of last year, Arla Foods announced plans to pay out its entire 2018 net profit of up to €310 million ($363 million) to its members, after one of the hottest and driest summers on record.
Strong Balance Sheet
Normally, the profit is allocated as a thirteenth payment and retainment, but Arla's strong balance sheet has enabled the board to deviate from retainment policy, the company said.
Chief executive, Peder Tuborgh added that the dairy giant's "financial goals will remain within the target ranges, provided that the representatives intend to return to the normal retainment policy after 2018.”
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
