Arla sales rise after ‘turbulent’ six months for dairy

The dairy processor’s total sales were up 4% compared with the same period last year, it reported today (August 25). Arla-branded product sales increased by 15%.

The company welcomed the results, as the sector had been enduring a challenging six months, Arla said.

‘Defining time for British dairy’​

The dairy processor’s md Tomas Pietrangeli said: “This success is likely to be welcomed given the wider turbulence of the last six months. We are entering a defining time for British dairy as the UK finds its place outside the EU.​

“Arla will continue to work in the coming months and years on generating greater returns for our farmer owners and being a champion of British dairy at a time when it needs one the most.”​

Arla-branded products’ sales rise were driven by its yogurt category, with Arla Protein and Arla skyr reporting sales increases of 59% and 82%, respectively.

Profitable growth​

But, volume driven sales were down 4.5% over the six months, as the company took significant steps to drive its profitable growth, Arla said.

Alongside its half-year results, Arla revealed that it was increasing its milk prices by 0.81p to 30.79p. The price rise would be a welcome boost to the company’s farmers, it said.

Arla Foods ceo Peder Tuborgh said: “As the global dairy market improved, we have responded to the sustained rally in global dairy prices while continually improving our product mix across key markets.​

“As a result, we have increased the on-account milk price to the farmers, who own our company, by 42% over the last 12 months. They needed that, as the past two-and-a half years have been tough for most dairy farmers around the world.”​

Meanwhile, last month, Tuborgh said that a butter and cream shortage​ will hike prices in the lead up to Christmas.