BoD’s proposal approved to return 264 million euros to farmer owners
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- 25 February 2021
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In a vote Wednesday during the annual meeting, Arla’s Board of Representatives approved the proposal of the Board of Directors to pay 1.75 eurocent per kg of milk in supplementary payment to all farmer owners. A total of EUR 264 million will be allocated to farmer owners across Europe as supplementary payment, interest and individual retainment.
Due to the cooperative’s strong financial position, Arla’s Board of Directors proposed a supplementary payment of 1.75 eurocents per kilo of milk delivered by each farm in 2020. The Board of Representatives voted to approve the Board of Directors proposal instead of the normal allocation of 1 eurocent per kg of milk in supplementary payment. In total, the approved proposal returns EUR 264 million Arla’s farmers owners as supplementary payment, interest and individual retainment.
The Board of Representatives also approved the consolidation of the remaining annual profit in the company as equity and for future investments.
“I am very happy that the Board of Representatives has supported the Board of Director’s proposal for a 13th payment of 1.75 eurocent to Arla’s farmer owners. This after payment is a proof of the strength of the corporative and the company we own together,” says Arla Foods Chairman Jan Toft Nørgaard.
2 other proposals for higher supplementary payments of 2.0 and 2.3 eurocents per kilo of milk respectively were also put forth by members due to the cooperative’s strong financial results in 2020. The Board of Representatives ultimately decided to approved the Board of Directors proposal.
For Arla’s farmer owners, the higher supplementary payment of 1.75 eurocent per kilo of milk delivered by each farm during 2020 will be part of the annual statement on 5 March 2021.
You can read more about Arla’s annual results for 2020 here: https://www.arla.com/company/news-and-press/2021/pressrelease/annualresults2020
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.