The farmer-owned dairy, Arla foods which is owned by 12,000 dairy farmers, 2,500 of them are British, which equates to a quarter of all UK dairy farmers.
Arla’s dairy farming owners will receive a share of £31m for their 2016 year-end bonus. Arla annually equally distributes it’s profits between all of it’s farmer-owners in the so-called supplementary 13th payment. The 2017 payment which was paid as a cash bonus on the 10th March was on average £9,000 to each Arla farmer across the UK.
£7 million of the year-end profits will be invested into each of the UK dairy farmer’s savings accounts should they leave the cooperative.
Arla’s Board of representatives including 20 British farmers agreed to this bonus, this year the British farmers within Arla will grow to 23 UK dairy farmers within the dairy cooperative.
Jonathan Ovens, Arla Foods Board Director said
“The 13th payment is one of many important benefits for farmer owners like me and is particularly welcome as we begin to come out of a difficult year. It enables us to invest in our farms, and also save for the future.
“It’s an annual benefit and a return on my investment that I couldn’t achieve elsewhere. It’s good to work together with Arla to back British dairy farming. As we need to increase the country’s milk production to meet growing demand, it’s also reassuring that Arla promises to collect every drop of milk I produce at the Arla price.”