Arla Raises the Price for Co-operative Owners
"Our co-operative owners need a better milk price and there is now an opportunity to increase the price thanks to the improved situation in global markets,” Arla Foods CEO, Peder Tuborgh.
18 Nov 2008 --- Arla’s Board of Directors decided that, with effect from 30 November, Arla’s co-operative owners will receive 10 øre more for their milk.
The new Arla price for December will therefore be 229.3 øre per kg conventional milk and 287.2 øre for organic milk. The increase is based on the positive development in the industrial market, where prices for whole and skimmed milk powder have risen in recent months.
Rising world market prices
Arla implemented the latest 10 øre increase on 5 October. This was also based on rising world market prices for industrial products.
"Our co-operative owners need a better milk price and there is now an opportunity to increase the price thanks to the improved situation in global markets,” Arla Foods CEO, Peder Tuborgh.
Market conditions are still difficult
He admits that 2009 has been – and remains – an extremely hard year for Arla and its co-operative owners and points out that market conditions are still difficult.
"We struggle every day to keep costs down while doing all we can to generate earnings in the markets. Although sales to industry are improving, we need better prices in the retail market if our co-operative owners are to receive further price rises. This isn’t easy, but we’re doing all we can."
A proper supplementary payment
The forthcoming price increase will not affect Arla Foods’ annual profit forecast of approx. DKK 900 million.
"We must maintain our profit level which means that there is scope for a proper supplementary payment and consolidation when the year is over," says Peder Tuborgh.
