Our Strategy: Future26

It's time to define the future of dairy

The future of dairy

If there ever was a time to act on our vision to “create the future of dairy to bring health and inspiration to the world, naturally”, it is now.

Dairy is at a defining moment. Globally, demand for dairy is growing – but it’s also changing.

How, when and where people buy and consume dairy is fast-evolving. Lifestyles and beliefs are being shaped by sustainability, nutrition, technology and urbanisation - intensifying competition amongst old and new players in the category and ultimately deciding who the winners and losers will be.

At the same time, climate change and biodiversity loss requires a re-think of our global food systems. While dairy is one of the solutions, it is also part of the problem. Only by becoming more sustainable can dairy maintain its important role in meeting the growing requirement for nutrition and high quality proteins globally.

These are the challenges our cooperative faces – and also our greatest opportunities.

Read the press release

Our aspiration is to be

A leader in value creation and sustainability

We will deliver our strategy by focusing on four key areas, which we have identified as key to creating value for our farmer owners, customers, consumers and society as a whole.

Lead sustainable dairy

Climate change and malnutrition are amongst the most difficult challenges of our time. Providing a healthy, affordable, and environmentally friendly diet for a growing population requires a radical transformation of the global food system. With nature and health right at the core of our products, we are confident that we can lead the industry.

To do so we will accelerate carbon reductions on our farms through more efficient practices and new technologies, invest in energy optimisation and green electricity in our operations, and convert to fossil-free fuels and circular packaging. To make the journey financially sustainable for our farmer owners, our actions will be commercialised, mainly through the Arla brand.

We will enable healthier and stronger lives across the world by offering more nutritious, natural and affordable products and inspire good food habits.

Scale to grow

Over the years, we have developed strong brands, category leadership, unique technologies and particular expertise in our supply chain. In combination, these are very powerful strongholds that has enabled us to build market leading positions.

Scaling and investing in our strongholds as well as our global brands and core markets in Northern Europe and the Middle East will be key to creating more value for both consumers, customers and our owners, the dairy farmers.

We aim to reach and connect better with more people, strengthen our strategic partnerships with customers, taking leadership in the category, scaling our distribution and becoming stronger in both traditional and new sales channels. We will also take our leading whey business in Arla Foods Ingredients to the next level with cutting-edge innovation and strong partnerships with customers and suppliers.

Build growth platforms

The growing global population and economic progress are driving a growing desire for dairy and we expect European milk to be in demand in the years to come. We will build new platforms for growth by reaching new consumers with relevant brands and affordable dairy nutrition, especially in China, South East Asia and West Africa.

At the same time, the dairy category is changing. New lifestyles, technologies and beliefs mean people are increasingly shifting to new types of products, online grocery shopping, more meals out of home and on the go. It requires investment in innovation and new capabilities. We aim to grow our Arla Pro brand for restaurants and bakeries and accelerate e-commerce in partnerships with the best e-com platforms.

Collaborate for efficiencies

In our low margin industry, we need to stay cost competitive. Our transformation programme, Calcium, has improved our efficiency significantly and the journey will continue. We are already advanced in functional efficiency and it’s now time to take the next step.

We will fund our future by having an end-to-end focus on becoming both more efficient and more effective in the way we work. We will collaborate more strongly across zones and functions, using digital technology and we will further develop our competences and ways of working. In Supply Chain, we will continue to optimize where and how we produce and deliver our products and at the same time reduce our carbon footprint further.

With commercial excellence, agile operating models, digital tools and data, we can exceed our customers’ expectations and grow together.

How we create value for our stakeholders

Our farmer owners

We will ensure a competitive milk price, maximising the value of their milk and providing the best possible support to accelerate their climate actions to help them reduce dairy's carbon footprint.

Our employees

We will invest in their employee experience, fostering an inclusive culture with opportunities to take on new challenges and accomplish great results. Together, we will create the most sustainable, efficient and digitalized business in the dairy industry.

Our customers

We will be a reliable and value-creating partner with the most appealing dairy brands and strongest category innovation, using data-driven insight and action to invest in their growth.

Our consumers

We will meet you where you are, through seamless experiences across multiple channels, offering great-tasting products that are naturally nutritious, inspiring, convenient and affordable. On top of that, our products will come with the reassurance that you can enjoy them as part of a sustainable diet.

Society as a whole

We will use our scale, expertise and resources to help nourish a growing population and drive the change that is necessary to create a future that is economically, socially and environmentally sustainable.