Arla: Farmer Owners to Receive 270 Million Euros in Supplementary Payment
Source: The DairyNews
In a significant move, Arla's Board of Representatives has approved a substantial supplementary payment of 2.07 EUR-cent per kilogram of milk for the year 2023. The decision, ratified with 163 yes votes against 13 no votes during yesterday's Board meeting, allocates a total of 270 million euros from the company's annual net profit to the farmer owners.
This amount surpasses the guaranteed level outlined in the retainment policy, set at 1.5 EUR-cent per kilogram of milk. The retainment policy includes 0.84 EUR-cent per kilogram, distributed between 0.31 EUR-cent as individual capital and 0.53 EUR-cent as common capital. The common capital is earmarked for consolidation within the company as equity and future investments.
Adjustments have been made for the interest on contributed capital and the impact of some farmer owners reaching the ceiling for individual capital. The decision aligns with the proposal put forth by the Board of Directors.
Following the Arla retainment policy, an interim supplementary payment of 1 EUR-cent per kilogram was disbursed in September, covering milk deliveries for the first six months of the year. This interim payment equates to 0.5 EUR-cent per kilogram on the total milk volume for the year.
For individual farmers, the final supplementary payment, scheduled for March 15, 2024, will be based on the constituent value of the milk supplied throughout 2023. This payment will be adjusted by deducting the amount received in September.
Arla's commitment to supporting its farmer owners is evident in this decision, reflecting the company's robust financial performance and dedication to rewarding its stakeholders.
Adjustments have been made for the interest on contributed capital and the impact of some farmer owners reaching the ceiling for individual capital. The decision aligns with the proposal put forth by the Board of Directors.
Following the Arla retainment policy, an interim supplementary payment of 1 EUR-cent per kilogram was disbursed in September, covering milk deliveries for the first six months of the year. This interim payment equates to 0.5 EUR-cent per kilogram on the total milk volume for the year.
For individual farmers, the final supplementary payment, scheduled for March 15, 2024, will be based on the constituent value of the milk supplied throughout 2023. This payment will be adjusted by deducting the amount received in September.
Arla's commitment to supporting its farmer owners is evident in this decision, reflecting the company's robust financial performance and dedication to rewarding its stakeholders.
