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Arla Foods has announced the highest-ever supplementary payment to its farmer owners, reflecting a strong financial performance in 2025 and underscoring its commitment to supporting sustainable farming and local milk production.

The cooperative’s Board of Representatives approved a total payout of €296 million, equivalent to 2.2 eurocents per kilogram of milk supplied, including interest on individual contributed capital.

The payment exceeds the guaranteed supplementary level under Arla’s retainment policy and is part of the cooperative’s strategy to return profits to owners while enabling investment in farm development and sustainability initiatives.

Jan Toft Nørgaard, chair of Arla, said the record payout demonstrates the company’s financial stability and its ability to deliver competitive returns to farmers across Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands.

“I am very pleased that the board of representatives have decided to pay out the highest supplementary payment ever to our farmer owners, demonstrating Arla’s financial strength and stability," he noted. "The payment is part of delivering a competitive return to our farmers to support them in continuing to develop their farms, invest in sustainability and continue local food production".

Arla, which owns brands including Lurpak, Castello, and Puck, continues to emphasise sustainable operations while maintaining its position as a leading player in the international dairy market, including as the world’s largest manufacturer of organic dairy products.

The record supplementary payment signals robust profitability amid rising global dairy demand, and highlights Arla’s approach of aligning farmer incentives with cooperative growth and long-term sustainability goals.