0.85ppl (1 euro cent) supplementary payment to Arla members

Arla is to make an additional 1 eurocent (0.85ppl) half year supplementary payment to its farmer owners across Europe.

This announcement follows a healthy set of 2022 half year financials with Arla passing back extra money to its members.

In the announcement Arla major on inflationary costs at farm and processor level with on farm costs +51% since January 2021 in particular feed +71% as well as reminding all that the lag in farmers receiving price increases is hitting milk volumes. 

Whilst the results and additional payout are positive the Arla commentary/press release is far from a fanfare of trumpets. 

The challenge for Arla and all processors is to do all it can to protect the security of member milk supplies this winter.

Supplies is crucial but against this is the seriously dry summer coupled with the news that sales of Arlas flagship branded products is falling and that is expected to continue.

 

These are certainly unusual and challenging times for milk processors and by default retailers.