In a market with normalising prices, consumers returned to Arla’s brands, and the cooperative is stepping up investment in future capacity, even as the value of milk itself came under pressure.
Arla Foods delivered a strong first half of 2026, with branded volume-driven revenue growth of 6.7 percent and net profit rising to EUR 213 million, up from EUR 158 million in the same period last year. That is according to a press release from Arla. The growth was powered by renewed consumer demand for the cooperative’s brands as prices normalised across markets, alongside accelerating worldwide appetite for dairy protein — particularly in protein and sports nutrition, where Arla® Skyr grew 39.6 per cent and Arla® Protein 34.4 per cent.
“We have entered 2026 in formidable shape. Demand for nutritious dairy is healthy across the world, our brands have more than recovered, and consumers are responding to better value with real enthusiasm. This is the cooperative performing at its best, turning strong consumer demand into real growth for our brands,” says Peder Tuborgh, CEO of Arla Foods.
Lower milk price despite strong results
While brands and demand for dairy protein strengthened, an abundance of milk across Europe, including a strong increase in Arla’s own milk intake, weighed on global commodity markets and pushed prices down. As a result, Arla’s performance price decreased to 43.6 EUR-cent/kg in the first half of 2026, from 57.5 EUR-cent/kg in the same period last year. The strong result has nonetheless enabled the Board to approve a half-year supplementary payment of 1 EUR-cent/kg of milk delivered to farmer owners.
“This is the market doing what it should. High milk availability has brought prices down across the sector, and that is the reality our owners are navigating right now, but a lower milk price does not mean a weaker cooperative. Our brands are growing, our business is efficient, and we remain highly competitive. That is what gives me confidence that Arla remains a strong and reliable home for our owners’ milk,” says Peder Tuborgh.
Record investment and upgraded outlook
In the first half, Arla decided to invest approximately EUR 300 million in a new cheese dairy at its site in Götene, Sweden — the largest single investment in the cooperative’s history, which will roughly double the site’s milk intake to around 1 billion kg per year from 2030. The half-year also marked the start of Arla’s merger with German dairy cooperative DMK, which took effect on 1 June 2026 and creates Europe’s leading farmer-owned dairy business. arlaarla
On the strength of the brand recovery, Arla is raising its guidance for branded revenue growth for the full year to 4.0-6.0 percent, up from the 1.0-3.0 percent guided in February.
By Maja Løvstrup
Photo: Arla Foods
