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Organic supplement increased by 0.05 DKK

Press Release   •   Aug 20, 2007 17:30 CEST

Milk producers who supply organic milk to Arla Foods will, from September 10, receive a total supplement of 0.50 DKK per kg milk. This represents an increase of 0.05 DKK.

Arla Foods’ Supervisory Board has approved a rise in the organic supplement from 0.45 to 0.50 DKK per kg with effect from September 10. The increase is based on the wish to encourage more conventional milk producers to switch to organic production.

“As we announced earlier in the month, Arla Foods wishes to increase organic production,” said Peder Tuborgh, CEO Arla Foods. “There are already a number of co-operative members who are keen to switch to organic production, but we want to encourage even more organic producers and have more organic milk so we can meet the market’s increasing requirements. This increase will help to encourage organic production.”

The increase in the organic supplement is in addition to the recent increases in the general on account price for Arla Foods’ co-operative members. Consequently, with effect from September 10, an organic producer will receive 2.84 DKK per kg supplied milk.

The organic supplement was last changed on January 1, 2007 when it was also increased by 0.05 DKK.

At its meeting on August 8, Arla Foods’ Supervisory Board agreed that organic production in Denmark should be increased by 25 per cent, equating to 75 million kg milk. The aim is for organic milk production to be increased by 25 million from September 2009 and by a further 50 million during 2010. Read more about the target here.

The applications from 19 conventional milk producers to switch to organic production have been accepted. These producers can now start on the transition process, which takes approximately two years. By that time, the 19 producers will together supply 24.5 million kg milk.

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Facts - Organic milk in Arla Foods

- Arla Foods has approx. 300 organic milk producers in Denmark and approx. 300 in Sweden
- Weigh-in of organic milk in 2007 is expected to total 300 million kg in Denmark and 130 million kg in Sweden.
- Both in Denmark and Sweden, it normally takes two years to switch from conventional to organic production. If plant cultivation is changed, the process is quicker. During the entire transfer process, Arla Foods uses the milk as conventional milk.

Read more about our organic milk products