Higher 13th payment and two instalments for Arla members

Arla has adopted an ongoing higher target for its 13th payment to members, and will make the payment in two instalments instead of passing it to producers in total at the end of each milk year.

Under the new policy, the supplementary payment will rise from 1.0 to 1.5 euro cents/kg of milk, provided the co-op makes an annual net profit representing at least 2.8% of revenue.

The change in payment dates will take place from the milk year starting on 1 April 2022, when members will get a mid-year payment of the bonus in September, followed by an end-of-year payment as usual.

See also: How to stay safe with cattle as public footfall increases

The size of the September payment will be decided by the board of directors based on the half-year financial results and expectations for the full year.

At the same time, the board approved a reduction in the amount retained by the co-op for investment from 1.5 euro cent/kg of milk to a maximum of 1.0 euro cent/kg. The new policy and numbers will be in place until the end of 2026.

Commenting on the changes, Arla Foods chairman Jan Toft Norgaards said: “We now have a solid policy in place that will safeguard our company’s financial and investment agility over the next five years and create predictability for our farmer owners, to support them in the investment decisions they will make in their farm businesses.”