Arla Foods, Aldi to collaborate on sustainable dairy farming investment

DENMARK – Arla Foods, a Danish-Swedish multinational dairy cooperative, is set to partner with supermarket giant Aldi, committing over US$39.3 million to support dairy farmers over the next three and a half years. 

The investment, set to run until mid-2027, seeks to enhance support for Arla’s farm owners, focusing on sustainability and animal welfare practices.

The funding will facilitate Arla’s ‘FarmAhead Customer Partnership,’ a new initiative aimed at boosting farmers’ ongoing efforts to drive reductions in on-farm emissions. 

Aldi’s involvement will include collaboration on farming projects and innovations designed to accelerate sustainable farming practices and decarbonize dairy production. 

Furthermore, Aldi has increased its investment in the Aldi Dairy Farm Partnership (ADFP) program to cover 100% of Arla’s Fresh Milk supply, expanding support for British farms from 25 to over 150. 

Liz Fox, the national sustainability director at Aldi UK, emphasized the supermarket’s commitment to responsible sourcing.

 “Our strengthened partnership with Arla allows us to better support farmers while driving positive change in the UK’s dairy sector,” she said.

Tim Dale, an Arla farmer and member of the ADFP since 2018, expressed pride in the ongoing relationship with Aldi. 

He noted that this investment marks another milestone in their shared goal of supporting dairy farmers to produce quality milk sustainably.

In addition to this partnership, Arla Foods has forecasted a remarkable revenue of nearly US$25 billion for 2024, representing a 52% increase from the revenue reported in the year’s first half.

For the first half of 2024, the cooperative reported revenues close to US$12 billion, accompanied by a net profit of US$300 million.

During this period, Arla collected an impressive 7 billion kilograms of milk, which allowed it to increase milk prices by nearly €0.10 per kilogram compared to the latter half of 2023.

Furthermore, the cooperative distributed a half-year supplementary payment of €0.035 per kilogram to its farmer-owners, reflecting robust financial performance.

Despite ongoing geopolitical tensions, Arla remains optimistic about easing inflationary pressures, rising wages, and steady consumer demand across Europe, which will enhance the outlook for dairy products. 

The cooperative believes that while increased retail prices from commodity price hikes may influence purchasing behavior, consumer purchasing power will remain positive, further supporting demand for dairy products.

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