One in four British dairy farmers is set to receive a share of a £31million bonus from Arla.
The European farmers’ co-operative, which produces Lurpak, Cravendale and Anchor, will distribute the cash among its 2,500 British members on Friday.
The cash comes from the 13th payment – the annual payment made by the co-op when it distributes its profits equally between all of its farmer owners.
Arla said £7million of the bonus would be invested into each farmer’s individual savings accounts – this pays out a lump sum to producers if they decide to leave the co-op.
The remaining £24million will be paid to farmers, equating to an average payment of almost £9,000 to each UK farmer owner.
Arla’s farmer 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.”
Earlier this year Arla released its accounts for 2016, revealing a boost in profits against a drop in turnover.
Group net profit was up 20.7% to 356million euros (£308million), while turnover was down 6.8% to 9.57billion euros (£8.29billion).
