Dairy cooperative Arla has reported an increase in revenue and has predicted a bigger rise for 2025, mainly due to higher prices.
The co-op said it had continued to reduce costs and that it would raise its dividend payment for 2024 to a record high.
Arla proposes a supplementary payment of 2.2 EUR-cent/kg milk delivered, marking the highest dividends paid to the farmer owners in the company’s history.
Owned by 7,600 dairy farmers in seven countries including the UK, it posted 2024 revenue of 13.8 billion euros (£11.4bn), up from 13.7 billion (£11.3bn) in 2023.
Revenue is forecast to rise between 14.5 billion euros (£12bn) and 15.3 billion euros (£12.7bn) in 2025, with growth "driven by the high dairy price level".
Arla CEO, Peder Tuborgh said: "We see a high demand for dairy and our products in particular across the globe."
It predicted consumer purchasing power would remain stable in 2025 following improvements in 2024 that were driven by easing inflation and rising wages compared to the previous year.
Arla's profit, which last year stood at 401 million euros (£332m), or 2.9% of its revenue, was expected to remain in the group's target range of 2.8% to 3.2% in 2025, it said.
Arla expects global dairy supply, which fell short of demand in 2024, to adapt to the elevated price levels, potentially boosting output in 2025, the co-op said.
However, geopolitical tensions and uncertainty in the global market were of concern, with the war in Ukraine and developments in the Middle East highlighting vulnerabilities in international supply chains.
Mr Tuborgh warned that in an an unpredictable world, maintaining food production was 'paramount'.
"Governments that have not yet prioritised a comprehensive strategy for food security must ensure that it’s in place going forward.
"Ensuring robust local food systems is not just a matter of economic stability, but a fundamental responsibility to safeguard our communities in times of uncertainty."
