This year (2025), Arla Foods is celebrating the 25th anniversary of the merger between the Swedish cooperative, Arla, and the Danish cooperative, MD Foods.

The merger created the company as a cross-border, farmer-owned dairy co-operative.

In the first half of 2025, Arla Foods marked the milestone by delivering results "in line with expectations" in a volatile market.

Since the merger a quarter of a century ago, Arla Foods has achieved a net profit of €158 million, and a performance price of 57.5c/kg. Revenue for the period was €7.5 billion.

Based on the performance, the board of directors has decided to make a half-year supplementary payment of 0.1c/kg milk based on the half-year milk volumes.

Arla Foods CEO, Peder Tuborgh said: "As we mark our 25th anniversary, Arla Foods’ ability to maintain a solid performance in a volatile market clearly demonstrates the strength of our cooperative model and the dedication of our farmer-owners and colleagues.

"Our performance in the first half of 2025 reflects our ongoing commitment to healthy, sustainable dairy and to creating value for all those who depend on Arla Foods," Tuborgh added.

Geopolitical uncertainty and higher dairy commodity prices created a more challenging market environment in the first half of 2025.

According to Arla Foods, these factors led to a 1.5% decline in Arla Foods' branded product sales volumes, compared to the first of 2024, as consumers became more cautious in response to higher prices and economic uncertainty.

Performance was also boosted by "exceptional" results in the ingredients business, which was driven by the successful intergration of Volac Whey Nutrition business acquisition.

In the first half of 2025, Arla Foods also made several decisions on future investments.

Tuborgh said: "Arla Foods’ high level of investment decisions in the first half of 2025 is a clear demonstration of our commitment to long-term resilience and reliability.

"By strengthening production and supply capabilities, we continue to play an important role in safeguarding food security and ensuring a steady supply of high quality dairy products for customers and communities across our markets," he added.

Full-year investments are expected to be in the range of €650-€700 million, excluding mergers and acquisitions.