A STRONG YEAR FOR OUR COOPERATIVE
INSIDE ARLA – SPECIAL EDITION
YOU MADE 2024 RESULTS STRONG
7,624 13,735
PERFORMANCE PRICE EUR-CENT/KG
DID YOU KNOW...
In 2024, you delivered 12.973 million kg of milk to our cooperative.
In addition our cooperative received 762 million kg of milk from others.
Your milk was made into products sold in more than 160 countries.
If all your milk was put into 1 liter cartons, and they were stacked on top of each other, they would reach the moon and back again more than three times.
JAN
TOFT NØRGAARD
Chair of the Board of Directors
“
WHAT WE DO AS FARMER OWNERS HAS NEVER BEEN MORE IMPORTANT FOR OUR COOPERATIVE AND FOR OUR ABILITY TO DELIVER GROWTH AND PROVIDE NUTRITION FOR THE WORLD.
DEAR FELLOW FARMER,
Our cooperative is strong! As farmer owners, we should take pride in our work and our results for 2024 where we all navigated a volatile world with success. This ensured a competitive milk price to more than 7,600 farmer owners. At the same time, our work to reduce our carbon footprint on farm has strengthened our position as an industry leader in sustainability.
Looking back at 2024 I believe we all should be proud owners.
DID YOU KNOW...
In 1958 Jan’s parents built their own farm, with just 12 dairy cows.
Jan bought his first two cows when he was 14 years old.
In 1982, he bought 50% of the family farm, becoming the sole owner in 1989.
In 2023 he initiated a handover to a former on-farm employee and family, who now owns 50% of the farm.
Currently there are approximately 640 dairy cows on Jan's farm.
Arla’s mission is to secure the highest value for our milk and in 2024 our cooperative delivered a performance price of 50.9 EUR-cent/kg milk. That is more than 8% higher compared to 2023 – and it’s the second highest ever in our history. Add to that a supplementary payment proposal of EUR 292 million or of 2.2 EUR-cent/kg milk; the highest in the 25-year long history of Arla Foods.
Getting consistently competitive prices for our milk is important for us as farmer owners. We all need to develop our farms – while dealing with high production costs and increasing demands. We need to develop to transition to more sustainable dairy farming and to maintain our cooperative's competitiveness in a dairy market with high demands.
With all the achievements we made in 2024, we remain firmly committed to deliver on our strategy. We will lead the dairy industry in value creation and sustainability. And we have a strong commercial and financial position supporting us. What we do as farmer owners has never been more important for our cooperative and for our ability to deliver growth and provide nutrition for the world.
That makes me optimistic and proud - as the chair of the board - as one of many owners of our cooperative – and not least as a dedicated and proud dairy farmer.
Kind greetings, Jan
13.8 131
3.7%
STRATEGIC
1,053
DID YOU KNOW...
Arla colleagues participate in an annual Barometer survey, sharing their feedback on working for the cooperative.
· In 2024, over 18,500 Arla colleagues participated.
88% of respondents expressed that they feel proud to work for our Cooperative.
VIDEO GREETINGS
See Peder's video greeting on Arla Farmers:
YOU ARE THE DRIVING FORCE BEHIND OUR STRONG RESULTS. “
DEAR FARMER, I
PEDER TUBORGH
of Arla
want to share my gratitude for your vital contribution in 2024!
Through your work on farm, you laid the solid foundation for our success. Your dedication is inspiring, and I hope you feel proud! You are the driving force behind our strong results and securing the highest ever supplementary payment.
Our cooperative traces its roots back to the 1880s, when dairy farmers united to foster solidarity, democracy, equality, and equity. This year marks 25 years since dairy farmers in Sweden and Denmark created Arla Foods, pioneering cross-border dairy cooperatives. Since then, more of you have joined from the UK, Germany, The Netherlands, Belgium, and Luxembourg.
And from these strong and deep local roots, we've grown into a leading global dairy company owned by more than 7,600 dairy farmers.
Each of you play a vital role in our cooperative and in society. Your milk is essential in securing nutrition for a growing population globally. You support your local communities and create jobs beyond your farm. Your commitment to high milk quality standards and innovation in sustainability adds significant value and demonstrates industry leadership.
Looking forward, challenges remain, with market volatility and geopolitical challenges. However, I am confident in our clear strategic direction, our resilience, and readiness for the coming years.
Once again, a heartfelt thanks to you, for everything you've done and what we have accomplished together in 2024. Alongside thousands of Arla colleagues, I am both proud and excited to continue the journey with you in 2025.
Warm greetings, Peder
CEO
ULTIMATELY, THE STORY OF 2024 WAS ONE OF STRONG COMMODITY PRICES WHICH RESULTED IN HIGHER FARMGATE MILK PRICES FOR FARMERS.
DID YOU KNOW...
Our cooperative milk supply decreased from 13.9 billion kg to 13.7 billion kg, a reduction largely driven by Germany and less contract milk.
Impact from foreign exchange rates was largely neutral, after strengthening in GBP and SEK was offset by devaluations in Bangladesh and Nigeria.
European inflation is expected to decrease to 2.4% in 2024, while global inflation will remain at a higher level at 5.8%.
OUR COOPERATIVE DELIVERED STRONG RESULTS IN A TIME OF TURBULENCE
Our cooperative's strong results in 2024 must be seen in context of a world, where conditions were challenging.
The world saw ongoing disruption caused by wars, uncertainties and disease, but there is reason to be hopeful because of economic recovery and falling inflation, as well as high dairy commodity prices.
In 2024 the global economic recovery continued, with growth in Europe up but still at a slow pace, while China and the USA grew steadily. A particular effect of this for dairy farmers across the world was an increase in consumer purchasing power, which pushed European retail sales volumes up by 0.8%, with the cheese category doing particularly well, up 1.5%.
Despite positive indications, there are still problems for the dairy market in places. Ongoing geo-political instability caused by the wars in Ukraine and the Middle East, as well as domestic challenges with new green taxes and legislation, continued to slow down growth. Poor weather conditions and the spread of bovine diseases in some markets also contributed to these financial constraints, as all farmers saw business costs rise sharply.
The story of 2024 was one of high commodity prices which resulted in higher farmgate milk prices for all farmers. This was driven almost entirely by fat prices, which increased by 40%, leading to a projected 12.3% increase in farmgate milk price across the EU in 2024.
HOW DOES OUR COOPERATIVE ENSURE THE HIGHEST POSSIBLE MILK PRICE?
Our cooperative is focused on securing the highest value for your milk while also creating opportunities for your long-term growth.
Your milk is transformed to generate value in many different ways - among them:
THROUGH WELL-KNOWN AND STRATEGIC BRANDS
Selling globally known dairy brands that consumers across the world desire.
THROUGH OUR EUROPEAN MARKETS
Bringing your milk and dairy products to consumers in our core European markets.
Our performance: Food ingredients
HARVESTING THE VALUE OF WHEY
THROUGH OUR INTERNATIONAL BUSINESS
Bringing your milk and dairy products to consumers across six continents.
THROUGH DELIVERING INGREDIENTS TO THE FOOD INDUSTRY
Utilising the components of milk to discover and deliver ingredients and products that advance lifelong nutrition.
Explore the details of the full Annual Report here: READ MORE
DID YOU KNOW...
In November 2024 Arla Foods Ingredients took full ownership of Volac Whey Nutrition Ltd. The Volac facility at Felinfach in Wales handles large volumes of whey and specialises in the production of whey protein isolate.
The site will become a very profitable cornerstone of Arla Foods Ingredients’ global production facilities, with further investment and expansion planned in the coming years.
Arla Foods Ingredients now has the ability to process significant additional quantities of whey, helping it to meet a growing market need.
Arla Foods Ingredients discover and deliver ingredients and products that can advance lifelong nutrition – working with customers, research partners, suppliers, NGOs and others.
The world population is growing so fast that we must produce more food than in the past 8,000 years within the next 40 years.
· Whey protein isolate contains over 90% pure protein with under 1% lactose or milk fat and there is high demand in health and sports nutrition sectors.
Arla Foods Ingredients sales made up more than 7% of Arla's total revenue in 2024.
OUR STRATEGIC GLOBAL BRANDS ARE DRIVING THE MAJORITY
OF VALUE TO OUR COOPERATIVE
You farmers are the true strength behind our cooperative. Your performance on milk production and sustainability this year, has allowed us to drive our cooperative forward. This allows us to build our brands, our flagship products that are known all over the world.
It was those brands which drove a revenue increase of 3.1% to more than 6.5bn euro, driven by strong market positions, smart expansion strategies, and consumers having more spending power as inflation eased and wages rose. The biggest jumps in branded
DID YOU KNOW...
· Lurpak® achieved global revenue growth of 8.4% to EUR 837 million with its volume-driven revenue increasing by 5.6%.
Our Arla® brand with its various successful sub-brands covering multiple categories such as milk, yoghurt, cream, powder and cheese, achieved a 3.9% growth.
Puck®, our leading brand in MENA, overall grew with a volume-driven revenue of 3.4%.
STRATEGIC BRANDED VOLUMEDRIVEN REVENUE GROWTH STRATEGIC BRANDED NET REVENUE GROWTH 3.7% 3.1% 2023: -0.7% 2023: 1.2% Our performance: Our brands
volume came from the Netherlands, Belgium, and France, as well as the UK.
Top performers
The main Arla brand was a star performer thanks to its sub-brands in categories including milk, yoghurt, cream, powder and cheese, and achieved a 3.9% increase in volume driven revenue. Among those, Arla Protein did particularly well, with impressive volume growth of 36%.
Lurpak was also a key asset to the business in 2024, able to achieve volume-driven revenue growth of 6.7% in Europe and doing particularly well in the UK and Denmark. Most exciting, however, was its strong growth of 3.7% outside of our core markets.
We were also pleased to see strong growth from Puck, our leading brand in MENA, which pushed up volume-driven revenue by 3.4% despite a challenging market situation that saw the introduction of several well-known rival brands into its segment.
…GROWTH WAS FUELLED BY ROBUST BRANDED POSITIONS, STRATEGIC GROWTH EFFORTS, AND INCREASED CONSUMER PURCHASING POWER DUE TO EASING INFLATION AND RISING WAGES.
Our brands
Lurpak® saw strong volume-driven revenue growth of 5.6%. It recently launched its plant-based version in Denmark and the UK.
UNITED KINGDOM
· A minor revenue decrease of 0.2% to EUR 3,055 million. Strong branded growth (Arla® Protein, Arla® Pro and Lurpak®).
· Decline in private label volumes and decreasing price levels.
SWEDEN
· Revenue growth of 3.6% to EUR 1,592 million.
Strong branded growth (Svenskt Smör®, Arla® Pro and Bregott®).
· Successful launch of Arla® Protein. Pressure from private label taking shares from brands within milk.
GERMANY
Revenue growth of 1.5% to EUR 1,272.
· Strong branded growth (Arla® Skyr, Kærgården® and BUKO®) . Successful launch of Milka® chocolate.
DENMARK
Revenue decreased by 1.3% to EUR 1,241 million.
· Branded growth (Arla® Protein, Starbucks™ and Lurpak®). Decreasing private label volumes impacted overall revenue.
THE NETHERLANDS, BELGIUM AND FRANCE
· Revenue growth of 4.1% to EUR 509 million. Strong branded growth (Melkunie® Breaker, Arla® Pro, and Arla® LactoFREE) price levels.
FINLAND
Revenue growth of 2.4% to EUR 397 million.
Strong branded growth (Arla® Protein, Arla Luonto+® and Arla® Apetina).
Strong growth in foodservice via new customers.
STRATEGIC BRANDED VOLUME-DRIVEN REVENUE GROWTH
SHARE OF TOTAL ARLA REVENUE 4.1% 58.6%
DID YOU KNOW...
Arla® Protein sales grew by 32.3%.
Arla® Pro sales grew by 8.7%.
Lurpak® sales grew by 5.6%.
OUR COOPERATIVE BRINGS DAIRY TO CONSUMERS ACROSS EUROPE
Close to 60% of our sales came from key markets in Europe.
In 2024 revenue grew by 1 percent and crossed the EUR 8 billion mark. Our brands were strong, inflation eased and wages increased – driving consumers to the dairy section in stores across Europe.
DANO® COOL COW
Dairy products targeted for low-income consumers are available in Bangladesh with Dano® Daily Pushti, and in Nigeria, Senegal and Ghana with Dano® Cool Cow.
DID YOU KNOW...
In Lebanon, the infrastructure for recycling is lacking. In 2024 the Puck® Reusability campaign, inspired consumers to reuse their glass jars and a campaign empowered Lebanese women to sell their handmade produce in reused jars in supermarkets.
In Canada we introduced the Bocconcini Water recovery project, focusing on saving water daily, improving pipe insulation to reduce carbon emissions and maintaining zero waste to landfill.
In Nigeria we opened a new yoghurt factory to process the growing volume of milk from the Arla farm. We also released a manual on Best Practices in Sustainable Dairy Farming, to equip dairy professionals with training tools to enhance farming practices.
Our performance: International
OUR ROOTS ARE LOCAL – BUT WE REACH THE WORLD
Our international business covers six continents.
A highlight of 2024 was how our branded portfolio successfully turned the tide and branded revenue grew, driven by increased volumes.
A whirlwind of challenges impacted the international business in 2024. From currency shifts in Nigeria and Bangladesh to geopolitical uncertainties in the Middle East.
While revenue numbers dipped slightly, strategic pricing adjustments and strong brand positioning helped our cooperative in turbulent times.
MIDDLE EAST AND NORTH AFRICA
Revenue decreased by 2.4% to EUR 972 million.
Branded growth ( Foodservice and Puck). Strong launch of Galaxy® chocolate milk in the region contributed to the significant impact on Starbucks™ from Geopolitical unrest.
NORTH AMERICA
· Revenue slightly decreased by -0.2% to EUR 339 million.
Branded volume growth (Arla® brand and Tre Stelle® brand).
REST OF THE WORLD
Revenue increased by 8.0% to EUR 649 million in 2024. Strong branded growth ( Arla® Protein brand, Arla® Pro and Starbucks™).
SOUTH EAST ASIA
· Revenue decreased by 1.7% to EUR 261 million.
Currency devaluations in Bangladesh with negative impact.
· Strong performance in Philippines and Indonesia.
Foodservice delivered strong growth.
CHINA
Revenue decreased by -20.1% to EUR 114 million.
· Branded volumes increased (Baby&Me).
Successful launch of Cocio® brand. Pressure from low milkprice in China and Oceania.
WEST AFRICA
Revenue decreased by 21.5% to EUR 100 million.
· Currency devaluation in Nigeria with negative impact.
Our local farm in Nigeria performed well, with the herd size increasing and yield meeting expectations.
ON AVERAGE, YOU REDUCED FROM 1.08 TO 1.06 KG CO²E PER KILOGRAM OF MILK. “
YOU HELPED REDUCE CO2e EMISSIONS FROM MILK BY 415,000 TONNES
In 2024, you demonstrated your continued dedication to reducing CO2e emissions on-farm, supporting our cooperative's long term goals.
On average, you reduced from 1.08 to 1.06 kg CO2e per kilogram of milk, mainly by choosing to shift to renewable electricity, use biogas, and make efficiency improvements. Since 2021, Arla farmers have decreased CO2e emissions by over 1.2 million tonnes.
The result is partly based on your 2023 farm performance, which was a difficult year for you, with volatile milk prices, legislative uncertainties and tough weather conditions in some areas.
When it’s all added up, our cooperative achieved quite a significant reduction in 2024 of 415,000 tonnes absolute milk-related CO2e emissions, primarily through your on-farm efforts. This corresponds to a reduction of 3% since 2023. In addition, in 2024 the FarmAhead™ Customer Partnerships were a success, with customers lining up to join. Currently more than 4 billion kilos of milk are in the programme across countries.
DID YOU KNOW...
In 2024 your FarmAhead™ Incentive points rose to 53 on average – up from 50 in 2023.
Our FarmAhead™ Customer Partnership enable customers to engage in climate reduction projects on farms, providing valuable data for ESG reporting and scope 3 climate targets.
Agreements in the programme has surpassed 4 billion kilos of milk.
For Scope 3 emissions –which is emissions for example related to on-farm production of milk and purchased whey, our ambition is to cut emissions by 30% by 2030.
DIGITAL FARM: LESS PAPERWORK, MORE VALUE
· Improved user experience.
Internal and external data integration.
New features to increase the value of data.
CREATING MORE TIME FOR WHAT YOU CARE ABOUT
As a dairy farmer, you would rather spend most of your time on farming and as little as possible on administrative tasks, such as uploading data.
On the other hand, registering data is important to make sure that your positive actions to reduce CO2e emissions are documented and rewarded fairly. It’s also important to maintain customers' trust in the data Arla is offering them.
However, all requirements are continuously reviewed to make things simpler for you when possible. Here are some examples:
Simplifying validation of data
The validation period is extended for more than half of the documents you have to upload to access Incentive points. You will no longer need to make quarterly uploads to re-confirm activities. You can still upload new activities every quarter.
Farmers before processes
The ambition is to ensure that the systems are designed with you, and not just with the backend data processes in mind. The aim is to continuously make the process more intuitive and user-friendly. As an example; ensuring that you only need to upload documentation once.
Using data from other sources
Some of the information you provide to our cooperative is already available in national data-bases. When possible, this available data can be integrated with our FarmAhead™ Technology. This way the time you use to upload data manually can be cut down.
Advanced insights and user experience
The new Arla Farmers platform has been launched to help you find what you need faster. You now have access to a Big5 simulator that can give you more clarity of what would make sense to change on your farm. The way you are presented with Arla’s milk price has also been improved.
Whey is a by-product of the cheese-making process and serves as a premium ingredient in nutritional and functional food applications, including in Arla® Protein shakes.
Cleanliness
Clean cows have a lower risk of being infected by disease. Mobility Cows walk without any problems, and have no pain in their legs and hooves. Good body condition Fit cows have the perfect amount of fat reserves on their bodies not to little and not too much.
ENSURING ANIMAL WELFARE: A COMMITMENT TO YOUR COWS AND COMMUNITY
Your milk and cows are the cornerstone of our cooperative. Your dedication to the well-being of your cows is admirable and deeply rooted in the way you lead your life as a farmer; first you feed the animals, then yourself. Your attention to animal welfare is also vital in maintaining the high standards we are known for in Arla.
Your efforts in promoting animal welfare are crucial to our success.
In addition to Arlagården which is at the heart of our initiatives to ensure animal welfare, animal robustness is a significant lever in our FarmAhead™ Check and Incentive. In 2022, our cooperative initiated a pilot project involving 18 Arla farms where farmer owners, with the support of veterinarians, focused on preventing common cow diseases and animal accidents.
On average, the project resulted in a decrease in cow mortality by 21% over 2 years. Workshops organized across our seven owner countries in 2024 aimed at sharing the insights and findings.
With your work combined with the expertise of veterinarians, we have seen a significant reduction in cow mortality rates, and together, we will continue to ensure and improve the welfare of Arla cows in all seven countries.
DID YOU KNOW...
On farm, technology plays an ever-growing role in ensuring animal welfare. Currently, many cows wear devices that collect various data, monitoring activity levels and patterns.
It enables you to monitor and address any health issues promptly.
This proactive approach ensures that the welfare of each cow remains a priority. ABOUT
Since 2003, the Arlagården® programme has been at the heart of our initiatives to ensure animal welfare.
· It reflects our commitment and adapts to meet both consumer expectations and evolving farm conditions.
Your role in submitting farm data and participating in audits is essential in maintaining these standards.
YOU FEED LIFE ALL OVER THE WORLD
Your milk is helping to tackle global malnutrition, improve access to affordable dairy products and is making a positive impact around the world. Food safety is one of the primary concerns in developing markets, and so our reputation as a responsible and safe manufacturer is paramount. As well as our work on safety, our cooperative is working to ensure your milk is helping to fight malnutrition in developing economies. Products in markets such as Bangladesh, Nigeria, Senegal and
Ghana are reviewed to ensure that they are nutritionally rich and affordable for low-income customers.
Alongside the work in developing countries, the cooperative is also helping to spread the word about the nutrition benefits of dairy in core markets. The success of products aimed at health-conscious consumers like Arla Protein, which achieved 36% volume growth in 2024, shows that messaging is achieving results.
While it is important to bring your milk to consumers today, it’s also important to look to the future. That’s why the cooperative is working with Denmark’s two largest universities on a research project called Arla Food for Health (AFH). The projects strengthen the
DID YOU KNOW......
In 2024, three new Arla Food for Health research projects were chosen to receive a total funding of EUR 1.6 million.
Products are not released to market if there are any food safety concerns, and all our production sites are certified under the International Featured Standards (IFS) on food safety.
To improve consumer awareness, campaigns on dairy nutrition were introduced in Nigeria. Additionally, Arla Eazy was launched in Bangladesh to offer even more affordable dairy options.
YOUR MILK IS HELPING TO TACKLE GLOBAL MALNUTRITION, IMPROVE ACCESS TO AFFORDABLE DAIRY PRODUCTS AND IS MAKING A POSITIVE IMPACT AROUND THE WORLD.
case for the positive effects of consuming dairy and dairy ingredients. Farmers in Bangladesh, Nigeria and Indonesia also being trained, so that our cooperative can develop a more efficient and sustainable dairy sector in these markets, nourishing a growing population.
Puck® grew volumes by 3.4%. The growth in both volume and revenue was led by the cooking creams and cooking cheese portfolio.
PUCK® THICK CREAM
YOUR MILK HAS ALLOWED US TO INVEST IN THE FUTURE
In 2024 our cooperative's investments in property, plant, and equipment reached a record high, with significant expansion in butter production in Denmark and support for Arla Foods Ingredients. Our cooperative also made new long-term investments, such as upgrading mozzarella technology at the Taw Valley plant and improving cheddar production facilities at the Lockerbie plant, both in the UK. On top of that, our cooperative took full ownership of Volac Whey Nutrition.
At the same time, there was focus on making our operations more efficient, ensuring that money was spent where
it made the biggest impact. Through our Fund Our Future programme, substantial savings of EUR 131 million were achieved by optimising logistics routes, refining recipes and product ranges, and bringing more expertise inhouse, particularly in Marketing and IT.
Looking ahead, global markets are likely to stay unpredictable, with rising tensions in the Middle East and a continuation of the war in Ukraine. However, consumer spending power
is expected to remain strong as wages continue to rise and inflation eases. Dairy prices are also expected to stay high due to strong demand and slow supply growth, influenced by evolving sustainability regulations in key markets.
This puts our cooperative in a solid position to meet the profit share target while also driving further efficiencies and securing additional savings.
DID YOU KNOW...
In 2024 our cooperative continued its work to find savings and operate more efficiently.
EUR 131 million was saved through the Fund our Future programme within areas such as logistics, recipes and product, Marketing and IT.
You can read the full annual report and dive into the details about our cooperative on Arla.com:
FARMERS IN FRONT: JOHNNY NIELSEN
Again this year the Annual Report from Arla features a farmer owner on the cover. Johnny Nielsen is the seventh generation on his family farm. The farm has 350 Holstein cows and 300 hectares of land which delivers most of the crops needed for feed. Johnny read about the FarmAhead™ Customer Partnership and applied to join the feed efficiency project. The focus of the project is to achieve an optimal milk-per-feed ratio while reducing feed waste, thereby making the milk more climate efficient.
You can read more news about our results on Arla Farmers here: