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New settlement method for milk

Press Release   •  Mar 14, 2002 14:58 CET

The milk price paid to Arla Foods’ co-operative owners will in future depend more on the milk protein content rather than on its fat content.

This is the result of a new payment system approved by Arla Foods' Board of Representatives last week. The new payment method will apply in both Denmark and Sweden and comes into force on October 1, 2003.

From that date, milk producers will receive higher payment for milk that is more profitable for Arla Foods, i.e. primarily milk with a high protein content.
Surveys predict increased demand for proteins while demand for milk fat is expected to fall. The value ratio between fat and protein will, therefore, be changed from the current 1:1.4 to 1:1.7.

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