The European dairy cooperative Arla Foods has unveiled its new five-year strategy. It aims for more sustainability and increased organic production, with Arla set to raise its investments by more than 40% to €4 billion.
Additionally, the dividend for the farmer-owners of the company will be increased to 1 billion euros, and the business operations must cut costs by half a billion. From now on, the additional payment will also be raised from 1 to 1.5 cents per kilogram of milk, provided the company achieves an annual net profit of at least 2.8% of its turnover.
The company states that with the previous future vision (‘Good Growth 2020’), it already improved its position on the global ranking of the largest dairy companies and hopes to grow further with the new investments in greater sustainability. Last year, Arla exchanged places on the global ranking with FrieslandCampina, which is now ranked 5th.
Arla says that with the new vision FUTURE-26, it has the right recipe to grow, deliver efficiency, and invest in sustainable initiatives. Over the next five years, the company stated that it “will continue to lead the sector in data-driven sustainable dairy production and will increase its commitments to meet the goals of the Paris Climate Agreement.”
During Good Growth 2020, the previous multi-year strategy, Arla strengthened its position in Northern Europe, the United Kingdom, and the Middle East. Arla now also plans to enhance its presence in the markets of China, West Africa, and Southeast Asia with butter, cheese, organic, affordable dairy nutrition, and nutrition for young children.
“We are at a decisive moment for dairy farming and our farmer-owners. The dual challenges of climate change and undernutrition are the toughest faced by our global food systems,” said CEO Peder Tuborgh at the presentation of the new multi-year policy.
“Urgent action is required, and dairy is part of the solution. If there was ever a time to take a step further and create the future of dairy, it is now.”