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PRIVACY
Retail & Consumer

Lurpak maker Arla Foods eyes cuts as it battles rising prices and 'consumer uncertainty'

Arla, which is owned by 9,400 farmers across Europe, has a large presence in the º£½ÇÊÓÆµ

Arla Foods has its º£½ÇÊÓÆµ head office in Leeds(Image: Dean Sanderson/Arla/PA)

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£½ÇÊÓÆµ 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£½ÇÊÓÆµ, 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£½ÇÊÓÆµ cows.