Arla unveils its 5 year global plan.

Arla has outlined its 5 year future 26 plan, accompanied by a powerful promotional film and the conclusion can only be Arla is ambitious and plans to drive change throughout the dairy chain.

 

Global demand for dairy products is predicted to grow by 2% each year driven predominantly by Asia, China, West Africa and The Middle East.

Arla were very bullish over the part its brands will continue to play in achieving its annual 3% to 4% growth target particularly the global Arla brand as well as Lurpak, Puck & Castello etc.

In addition, Arla has committed to increase its capital investment by 40% to £3.4 billion (4 billion Euros) during this five year period.

 

Arla believe they will lead the world in the direction of sustainable dairy farming.  During Wednesdays briefing it was stated that “Arla will create the future of Dairy” by promoting the health benefits and sustainability of Arla’s dairy production. 

 

On its efficiency and cost reducing calcium project Arla’s target is to achieve a further £4.25 million (500 million Euro) cost saving by 2026 in addition to the 400million euro saving it achieved in the past three years since 2018 making a total saving to the business of £773 million (900million euros).

 

Ian calculates this is worth around £82,200 for each of Arla’s 9,406 members across seven countries which is just a fair lump of money.

 

It was a hard-hitting 5 year plan launch which confirmed the ultimate goal is to increase member farmgate milk prices.

 

During the Q and A a Danish invitee raised the question of milk output declines in several of the seven countries Arla process milk in.  It’s a concern however in response to another question on potential new recruitment Arla’s head honchos confirmed they anticipate an average 1% milk output increase each year will come from current members.