Arlas Excellent financial results lead to an increased 13th payment

Posted on: 12/02/21

Arlas performance in 2020 was best summarised as Delivering a stable milk price to its owners in an extremely volatile year. 

Thursday’s press briefing with Arla was a catalogue of 2020 successes for the European Co-op and at the end of February the Arla BOR will vote on a recommended increased 13th payment of 1.58ppl (1.75-euro cents kg) which if confirmed will increase members pay-out for the year.

Arlas results were a credit to them in particular:

13.1% increase on branded sales in the UK mainly Lurpak.

Total UK revenue increase of 8.7% to £2.12 billion (£1.95 billion 2019).

UK sales of Cravendale branded milk up 23%.

UK sales of Lurpak up 15% which was described as “amazing growth”. 

Savings from Arlas ambitious 400 million Euro cost cutting exercise Calcium are ahead of target having reached 354 million Euro by the 31st December in less than 2 years and is expected to boost members 2021 milk price.    

During the year 50% of Arlas products were hit by the Covid outfall resulting in the co-op simplifying its range as well as moving milk into high demand areas for example branded products destined for home consumption and baking.

Volumes supplied by the average Arla UK members were more or less static with increased UK volume coming from the Sainsburys/ex Medina Bossman transfer producers.

Arla has 10 UK processing sites and confirmed there are no brakes on UK investment which include completion of a £25 million investment in its Settle facility in Lacto free production. 

Globally Arla sells products in 153 counties and recorded total revenue of £9.44 billion (Euro 10.6 billion) in 2020.

The encouraging message Ian noted was that Arla are well aware of the on-farm cost increases which have been estimated by Kite Consulting to amount to an extra £285 million for British Dairy Farmers.

For 2,240 Arla UK farmers it’s a positive and encouraging set of results. For hundreds who long for the day when Arla opens its recruitment doors it could be a very long wait.