Update, 2 March 2026:
The article below was published before Arla’s Board of Representatives approved the final supplementary payment for 2025 at the end of February. With a supplementary payment of DKK 0.16 per kg, Arla’s total milk price for 2025 amounts to DKK 4.37 per kg, including supplements and the supplementary payment. This means that Arla’s final 2025 settlement exceeds FrieslandCampina’s reported price of DKK 4.25 per kg.
With an average milk payout of DKK 4.25 per kilogram, the Dutch dairy giant FrieslandCampina has taken the lead in the European price race. However, despite record-high revenue, management is now warning of increased market pressure in 2026.
FrieslandCampina has just unveiled its 2025 annual results, confirming a year of historically high payout levels. With a total price of approximately DKK 4.25 per kilogram of milk – including supplementary payments and bonuses – the Dutch cooperative edges marginally ahead of Arla Foods, whose so-called Arla performance price for the same period amounted to DKK 4.21 per kilogram. It should be noted, however, that an additional supplementary payment to Danish Arla owners is still pending, making the final difference between the two cooperatives even more uncertain.
Price comparison with reservations
Although FrieslandCampina appears to lead the price battle on paper, the accounts underline structural differences between the two cooperatives. While Arla operates with a direct ongoing settlement model, FrieslandCampina uses a guaranteed price model that continuously benchmarks selected competitors. In addition, the Dutch cooperative operates with complex member accounts, making a direct ‘like-for-like’ comparison difficult for its approximately 8,800 members.
Nearly DKK 2.5 billion in profit despite commodity pressure
The group’s financial foundation remains solid, with revenue increasing by DKK 3.7 billion, bringing total turnover to DKK 100 billion. Net profit for the year reached just under DKK 2.5 billion.
However, the success comes with a warning from the top. Chief Executive Officer Jan Derck van Karnebeek makes it clear that tailwinds may turn:
– As expected, 2026 has had a somewhat challenging start due to continued pressure on dairy commodity prices. We expect these market conditions to persist into the second half of the year, said Jan Derck van Karnebeek, according to LandbrugsAvisen.
Europe awash with milk
The challenge is driven primarily by rising milk volumes. In 2025, FrieslandCampina received approximately 200 million kilograms of additional milk from its members, bringing total intake to just under 9.3 billion kilograms. Combined with Arla’s massive deliveries of more than 13.6 billion kilograms, this points to a European market where supply is expanding significantly. This volume growth is the primary cause of the current pressure on market balance, which both cooperatives expect will shape the remainder of 2026.
By Maja Løvstrup
Source: LandbrugsAvisen
Photo: FrieslandCampina
