Area board approves highest-ever supplementary payment
The approved payment amounts to €292 million
28 February 2025
2 minute read
By: Arla’s Board of Representatives has approved a supplementary payment of 2.2 euro cents per kilogram of milk (including interest on individual contributed capital) to be paid to farmer owners for milk supplied in 2024, according to a company-issued press release.
The decision, made during a board meeting yesterday, means that €292 million of Arla’s annual net profit - the highest payout in the company’s history - will be distributed among its farmer owners. The proposal was overwhelmingly approved, with 180 votes in favour and just one against.
“This record supplementary payment highlights Arla’s financial strength and competitiveness,” said Jan Toft Nørgaard, chair of Arla. “It is essential for our farmers as they continue to develop their farms, invest in more sustainable milk production, and maintain local food production.”
In addition to the supplementary payment, 0.84 euro cents per kilogram of milk will be retained, split into:
- 0.31 euro cents/kg as individual capital
- 0.53 euro cents/kg as common capital
The total amount has been adjusted for interest on contributed capital and the impact of some farmers reaching the ceiling for individual capital.
Arla’s retainment policy guarantees a minimum supplementary payment of 1.5 euro cents/kg, provided net profit is at least 2.8% and total retainment does not exceed 1.0 euro cents/kg.
In September 2024, an interim supplementary payment of 1 euro cent per kilogram was made for milk delivered in the first half of the year—equivalent to 0.5 euro cents/kg when spread across the total annual milk volume.
The remaining 1.61 euro cents/kg, along with interest on individual capital instruments amounting to 0.13 euro cents/kg, will be distributed in March 2025.
