Arla Reports €13.8bn Revenue, Plans Higher 2025 Growth

Dairy cooperative Arla Foods reported a slight revenue increase in 2024, posting €13.8 billion, and anticipates a larger rise in 2025 driven by high dairy prices, with forecasts ranging from €14.5 billion to €15.3 billion. The cooperative, owned by 7,600 dairy farmers across seven countries, plans to distribute its highest-ever dividend payment in 2024, reflecting a profit of €401 million. CEO Peder Tuborgh noted a robust demand for dairy products globally, despite potential challenges from geopolitical tensions and market uncertainties. Following a sluggish start to the 2024/25 milk year, an uptick in prices and favorable weather has led to increased milk production, though price pressures may emerge as production rises. The UK market specifically saw a 7.6% revenue growth in branded products, although total UK revenues declined due to lower prices and volume adjustments. Looking ahead, while optimism exists for growth, producers must prepare for the impact of fluctuating market conditions and global risks.