Arla Foods, the dairy behemoth behind brands such as Lurpak and Cravendale, has issued a warning that it is planning to make cuts of up to €110m (£91.1m) in 2025 due to escalating prices and consumer uncertainty.
The Danish-Swedish multinational co-operative, which has a significant footprint in the º£½ÇÊÓƵ and its headquarters in Leeds, also anticipates reporting a revenue of between €14.5bn to €15.3bn this year, driven by high dairy prices, as reported by .
However, the company cautioned that these same elevated price levels, coupled with consumer uncertainty, "are expected to pressure branded volume-driven revenue growth", which is predicted to drop to just between one and two per cent.
Arla further stated that it plans to achieve "efficiencies" in 2025 of between €90m and €110m.
These projections were announced alongside Arla's group revenue of €13.8bn for 2024, an increase from the €13.7bn it posted in 2023.
In the º£½ÇÊÓƵ, branded revenue rose by £89m, but overall revenue in the country declined by 2.9 per cent year on year.
Arla attributed the decrease to "changes in the external landscape such as lower prices and overall milk volume declines, plus adjustments to private label volumes".
This comes after Arla faced calls for a boycott in November 2024 when it revealed plans to test Bovaer, a feed additive, on some of its º£½ÇÊÓƵ cows.
The boycott was sparked by misinformation about the safety of Bovaer.
Bas Padberg, managing director of Arla Foods º£½ÇÊÓƵ, remarked: "2024 was clearly a year of strong branded growth, which really highlights the power of the portfolio and product mix we have, as shoppers look for quality, nutritious and tasty products."
He further stated that as a cooperative, their aim is to generate the best returns for their owners and noted, "through strong collaboration and the support of the farmers, our customers and the whole business, means we can give back to our farmers for the hard work they do in producing our food and investing for the future of the dairy industry."
Padberg added on the nutritional value of milk, "As a nutrient dense food, milk can play an important role in contributing to a healthy, balanced diet."
He concluded by emphasising the company's commitment, "Supporting people with access to quality dairy products is something we are hugely passionate about and will continue to do into 2025."
