Arla to pay out entire net profit for 2018 after farmers faced tough summer

THE global dairy company and co-operative Arla Foods, owned by 11,200 European dairy farmers of whom around 2,700 are British, is proposing to pay out its entire 2018 net profit when the annual results are approved early next year.

The proposal prepared by Arla’s board of directors is due to the positive development of Arla Food’s balance sheet, as well as recognition of the tough financial situation many Arla farmers are facing due to this summer’s drought in Europe.

The supplementary payment will be made as a one-year only deviation from the company’s usual appropriation policy and is expected to be in the range of €285-310m (£256.5m £279m) or equivalent to 2.3-2.5 EURC (2.07p 2.25p) per kg of milk.

Meanwhile, First Milk, the wholly British farmerowned co-operative, announced yesterday that its milk price from tomorrow will increase by 0.5p per litre (ppl).

This takes the price of a liquid standard litre (four per cent butterfat, 3.3 per cent protein) to 28.5ppl, while the price of a manufacturing standard litre (4.2 per cent butterfat and 3.4 per cent protein) will be 29.47ppl.

Market round-up

C&D Auction Marts Ltd had no prime cattle forward in Dumfries on Wednesday, but in the rough ring 19 beef cows averaged 111.2p per kg and 38 dairy cows levelled at 96.4p.

The firm also sold 720 prime lambs to a top of £98 per head and 209p per kg to average 190.4p (+14.4p on the week).

The 394 cast sheep forward saw heavy ewes sell to £127.50 and average £77.68, while light/exporttype ewes peaked at £92.50 for Cheviots and levelled at £48.39.

Messrs Craig Wilson Ltd sold 919 prime lambs in Newton Stewart on Wednesday to a top of

£100 and 205.6p to average 184.6p (+7.6p).

There were also 151 heavy cast ewes that sold to ££116 for Texels and averaged £91.68.

One hundred and forty-five light ewes peaked at £69 for Blackfaces and levelled at £37.60.

The firm went on to hold their annual Blackface ewe lamb sale at Ayr yesterday when there were only 376 forward.

The smaller show reflected the poor lambing and consignors keeping more or all lambs for stock.

Topping this section at £120 was J&W Kay and Son, Scenteuch with the final average levelling at £76.91 (+£1.62 on the year).

There was a mixed show of 1,002 Scotch

Mule gimmers that sold to £134 for a pen off Messrs Craig & Son, Rankinston and averaged £110.19 (-£9.69).

Scotch mule ewe lambs peaked at £99 for M&F Burns, Glenside and levelled at £80.65 (-11p) for the 906 sold.

A larger show of 1,278 store lambs averaged £59.28 (-£1.27 on the week).