DAIRY producers signed-up with Arla Foods are to receive a cash boost averaging £9000 each.
The multinational food co-op announced this week that its UK owner-members have been allocated a total of £31 million as their 2016 year-end share of the group's profits.
Of that windfall, £7 million is to be invested into individual savings account for each farmer, to build up a lump sum they can access should they decide to leave the cooperative. The remaining £24million is to be distributed directly as producers' so-called 13th payment, paid as a cash bonus at the end of this week.
Arla is owned by over 12,000 dairy farmers across Europe, 2500 of which are in the UK, accounting for almost a quarter of our dairy farmers. The 13th payment is distributed to all these farmer-owners proportionate to the amount of milk they supply, rather than based on their equity investment in Arla.
The £9000 average bonus was agreed by the company’s board of representatives, which is almost wholly comprised of elected farmer-owners and includes 20 UK farmers.
Arla Foods board director Jonathan Ovens said: “The 13th payment is one of many important benefits for farmer owners like me and is particularly welcome as we begin to come out of a difficult year. It enables us to invest in our farms, and also save for the future. It’s an annual benefit and a return on my investment that I couldn’t achieve elsewhere."
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