Arla Foods’ Board of Representatives has approved the allocation of the annual profits as recommended by the Board of Directors. The Annual Report for 2008 is, therefore, now available.

The Annual Report reviews the events that made 2008 a historic and dramatic year for Arla Foods. You can also follow the milk’s journey from cow to consumer.
 
In the preface, CEO Peder Tuborgh states:
“2008 was a record year in terms of members’ earnings which were DKK 2.82 per kilo for members’ milk against DKK 2.47 in 2007. The key figures in Arla Foods’ annual accounts show falls in several areas. Owing to Arla’s cooperative status, however, we have decided to maintain a consistently high payment to our owners. However, towards the end of the year, we faced increased price pressure. The global market for milk reversed from a shortage to a surplus, competition instensified and the deepening financial crisis resulted in a reduction of record high milk prices to our members.”
 
Chairman Ove Møberg comments:
 “Yet another year with substantial fluctuations in the global market has come to an end. This time it started on a high, but ended on a low note. We have laid the foundations for a more agile company with more frequent dialogue with owners and the right focus on the future, guided by clear and crucial priorities.
 
Read or download the full report here.
 
Allocation of the annual profits
Arla Foods’ profits for 2008 of DKK 556 million are allocated to the co-operative members in øre per kg co-operative member milk: 

• Supplementary payment 2.2 øre
• Consolidation on delivery based owner certificates 3.0 øre
• Strategy fund 2.1 øre
• Reconsolidation 2.1
• Return on personal accounts 0.1 øre