The board of dairy firm Arla Foods has proposed paying out its entire 2018 profit to farmers, many of whom are struggling following this summer’s drought across Europe.
Arla said that, in light of its “strong balance sheet” and the fact that farmers are facing a “tough financial situation”, it is in the firm’s best interest for this year’s net profit to be paid out to them. Annual profit is expected to come in between £257.6m and £280.2m.
Arla chairman Jan Toft Norgaard said: “As a farmer-owned dairy company, we care deeply about the livelihood of our farmers and we recognise that this summer’s drought in Europe has been extraordinary.
“We are proposing that extraordinary measures be taken in this situation, and the board is satisfied with the positive development of the company’s balance sheet, which makes this proposal possible.”
Arla owns brands including Anchor and Cravendale.