Farmers may get €290m
Date 02.27.2019 | Category: News
In a vote late on Wednesday (27 Feb), Arla’s Board of Representatives approved the proposal of the Board of Directors to pay out the entire annual net profit of Arla Foods to farmer owners. This sets up an extraordinary pay day on March 8th when a total of EUR 290 million will be wired to Arla’s farmers as a supplementary payment.
Normally, the profit is allocated as a 13th payment and retainment, however, a strong balance sheet enables the board to deviate from Arla’s retainment policy and propose that representatives pay an amount of 2.3 Euro cents, per kilo of milk, to the owners.
“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. 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,” says Arla's Chairman Jan Toft Nørgaard.
"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,” says Arla’s CEO Peder Tuborgh.
For the owners, the decision to pay out the entire net profit means that there will be a 13th payment averaging 2.3 Euro cents paid for every kilo of milk delivered by each farmer during 2018. The payment is made as part of the annual statement on March 8th 2019.Source: Arla FoodsAuthor: Sossna