Higher pay-out for Arla members

Arla Foods has announced strong annual results for 2007 with the profits amounting to DKK 938 million – after the company paid out DKK 1.2 billion (€161m) more than expected to its co-operative members in the second half year.

Due to the unprecedented change in milk sourcing and global demand for milk in 2007, Arla Foods implemented price increases in all markets, which has had a positive effect on the annual results. Other factors positively affecting the annual results were the integration of Tholstrup Cheese in Denmark, Arla Ingman in Finland and, in particular, Arla Foods UK. Arla Foods’ turnover for 2007 totalled DKK47.7 billion (€6bn), which is DKK2.2 billion (€295m) more than the year before.

Arla Foods’ CEO Peder Tuborgh says: “Never before have we experienced such a turbulent year and such fluctuations in milk prices in global markets. We have succeeded in sustaining last year’s excellent level of profit while delivering significant milk price increases to our owners.”The annual result means that, on average, Arla Foods has generated 247 Danish (€0.33) per kg milk sourced by the company from its co-operative members.