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Arla’s Board of Representatives has decided to distribute a total of EUR 124 million to the farmer-owners as the annual supplementary payment, also known as the 13th payment. On average, that amounts to one eurocent per kilo of milk supplied by each farmer.
Arla delivered a solid business performance throughout 2016 and made a strong start to the delivery of its strategy, Good Growth 2020, despite highly volatile milk markets. While revenue declined due to the global price environment, Arla continued to improve the quality of its sales by moving more milk from bulk to brands, and Arla’s net profit grew 20.7 per cent to EUR 356 million.
In 2017 Arla expects to invest 335 million euro in its production sites around the world to support its Strategy 2020 by moving more milk from bulk into branded retail sales and foodservice. The investment is nearly a 50 per cent increase compared to last year's plan and one of the highest ever single-year supply chain investment forecasts in company history.
Arla is teaming up with a number of partners to launch the ‘Food Reform for Sustainability and Health’ (FReSH) programme. It aims to define guidelines on sustainable diets, redefine food production, reshape food consumption and evaluate a sustainable footprint for food transport.
Head of Arla’s South East Asian business, Patrik Hansson, is to return to Sweden as the new head of Arla’s Swedish business from 1 November. He will take over from Henri de Sauvage who announced he is leaving Arla to pursue external opportunities.
A sparkling milk & fruit drink, a milk & tea drink and an energy drink rich in protein are all part of Arla’s new ambition to triple its business outside standard white milk in the global beverage market. Arla wants to challenge soft drinks with healthier milk-based alternatives.
At a time when dairy companies have struggled with the continued European oversupply of milk, Arla has strengthened the quality and profitability of its business. Arla’s strategic branded sales grew 6.1 per cent in the first half of 2016, although decreasing market prices in Europe negatively affected Group revenue. The outlook for the second half of 2016 is positive.
Today Arla has opened a brand new state-of-art distribution terminal with a combined 10,000 m² warehouse with cooling areas and office buildings in Heidenau near Hamburg. The new facility will service the northern and eastern regions of Germany with Arla products.