On February 26, the representative board approved a proposal for a payout of 2.2-euro cents per kg of milk to cooperative members for milk delivered in 2024. At the same time, Arla is adjusting its sustainability incentive model.

A total of €292 million — Arla’s highest-ever annual net profit payout — will be distributed to cooperative members following the board’s decision at yesterday’s meeting. The payout amounts to 2.2-euro cents per kg of milk, including interest on individual consolidated capital, according to an Arla press release.

The proposal, put forward by the board of directors, was approved with 180 votes in favor and one against.

• I am very pleased that the representative board has decided to grant the highest payout ever to our cooperative members. This reflects Arla’s strength and competitiveness and is crucial in enabling our farmers to continue developing their farms, investing in the transition to more sustainable production, and maintaining local food production, said Jan Toft Nørgaard, Chairman of Arla.

Adjusting the Sustainability Incentive Model

In 2023, Arla introduced the FarmAhead™ sustainability incentive model, which directly incorporates climate action efforts into milk pricing based on points earned by farmers for implementing climate measures on their farms.

Now, Arla is adjusting the scheme. From April 1, 2025, an additional point can be earned for managing livestock manure for grazing cows. Starting in January 2026, a total of four points can be awarded for establishing permanent grasslands and using perennial crops. This will bring the maximum possible points in the scheme to 84.

The average number of points earned in the FarmAhead™ incentive model has consistently increased, rising from 50 points in 2023 to 53 points in 2024. Last year, Arla’s total milk-related emissions were reduced by 3% compared to 2023, equivalent to 415,000 tons of CO₂.

You can read the full press release HERE.