Arla has agreed to pay out over £252 million in profit to farmers on March 8th following a board meeting which stamped their approval.
Last week, Arla's Board of Directors proposed a pay-out of the full net profit for 2018 of EUR 290 million (£252m) to its 2,400 British farmer owners.
Arla’s Board of Representatives approved this proposal in a vote late on Wednesday night (27 February).
This now sets up an extraordinary pay day on March 8th when millions of pounds will be wired to Arla's farmers as a supplementary payment.
Normally, the profit is allocated as a 13th payment and retainment, however, Arla's strong balance sheet enables the board to deviate from its retainment policy and propose that representatives pay an amount of 2.3 Euro cents, per kilo of milk (2 pence per litre), to farmers.
“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,” said Arla's Chairman, Jan Toft Nørgaard.
“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.
“Our balance sheet has improved significantly over the past five years. Our financial goals will remain within the target ranges, provided that the representatives intend to return to the normal retainment policy after 2018.”
