DairyCo

Company Review: Arla

Published 20 December 11

The updated review of Arla's strategy and performance is now available to download.  Formally titled the "Company Strategy and Performance Report", the report provides information on:

• The markets each of the buyers are involved in, and the current state of these markets in terms of profitability, growth potential, and how well the buyers are performing in those markets.
• How efficient the company is in generating profits from its milk and the margins it is making from production.
• How secure the company is financially, both in the short run and longer term. 

By understanding the business environment that your milk buyer operates in, how successful it is in that market and what its strategies are for growth, you are better able to make long term decisions on how to align your production system to your milk buyer. The detailed information provided in the individual Company Reports and the summary Guide to Milk Buyers will provide you with the background knowledge to answer questions such as:

• Is the buyer able to compete in its core markets over the long run?
• Is the buyer investing in its company to maintain competitiveness?
• Are its markets growing or shrinking? Or are they getting so competitive that margins are being eroded? Is this a short term or long term situation?
• Is it able to take advantage of opportunities in the marketplace and improve profitability?

All of these aspects help to provide a picture of the direction the company is taking, the risks and opportunities it faces and whether it has the potential to pay a price for your milk which will allow you to obtain a sustainable margin over the long term.

To download the report, please click here.