For European dairy cooperative Arla, 2015 revenues decline 3.3%
Arla cited several factors for the result, including increased milk supply in Europe, China’s slowdown in demand and the Russian embargo.
Revenues for the European dairy cooperative and dairy processor Arla declined 3.3% to 10.3 billion euro in 2015. In a statement, the co-op described the performance as “robust” and “fully in line with the company’s expectations.” The net profit of the Arla Group in 2015 was 295 million euro, and 285 million euro for Arla Foods. Read the complete annual report here.
Arla cited several factors for the result, including increased milk supply in Europe, China’s slowdown in demand and the Russian embargo. In response to these events, Arla said it moved even more of its milk into branded dairy products and foodservice, improving market positions and driving down costs.
“We knew 2015 would be tough on all markets, and it was. Dairy prices have been under pressure worldwide all year, and every dairy farmer has felt the consequences. It affected Arla’s milk price to our owners and our revenue in 2015. Having said that, Arla has achieved what we set out to do within our business in a year when the entire dairy industry has struggled,” said Arla Foods CEO Peder Tuborgh.
Arla Foods is an international dairy company owned by 12,700 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxemburg and the Netherlands. Well-known brands include Lurpak and Castello. Arla Foods calls itself the world's largest manufacturer of organic dairy products.