Arla raises the price for milk producers by 0.25 DKK per kg

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30 October 2007
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Arla Foods is raising the on account price by a further 0.25 DKK per kg milk with effect from November 5, 2007. As a result, the price for milk producers has been increased by a total of 78.6 Danish øre since July this year. The organic supplement is being increased for the fourth time this year.

On Tuesday, Arla Foods’ Supervisory Board approved a further increase in the on account price – the ongoing payment each co-operative member receives per kg milk supplied to the company – by 0.25 DKK with effect from November 5, 2007. Thus, the average price will reach 2.889 DKK per kg milk supplied.

”Arla Foods’ strategy and hard work now allows us to raise the on account price yet again. I feel very good about the fact that the revenue continues to strengthen the cooperative owners’ business, and I hope that their investments in an increased production are stimulated by these price increases,” says Arla Foods’ chairman Ove Møberg.

“Developments in world markets remain positive for our co-operative members. As price increases for our customers are implemented, the additional revenue is paid out to the milk producers, the company’s owners. We will continue to monitor market developments carefully,” says Arla Foods’ CEO Peder Tuborgh.

Earlier in the year, the Supervisory Board decided that the relative price gap between conventional and organic production should be maintained. As a consequence, the Supervisory Board has also approved that the supplement for organic production should be increased by 0.055 DKK to a total of 0.623 DKK with effect from November 5 this year. This is the fourth time this year for the organic supplement to be increased.

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Arla Foods is an international dairy company owned by 9,700 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world's largest manufacturer of organic dairy products.

Press contact

Arla Group Press Office
Arla Group Press Office (journalists/media only) +4591310310
Åse Andersson
Åse Andersson Head of Media Press contact for Arla Foods in Denmark +45 91 310 310 +45 89 38 10 00
Carina Østergaard
Carina Østergaard Corporate Communication Manager Press contact for Arla Foods International +45 91 31 16 01 +45 89 38 10 00