Arla Foods has entered a new three-year contract with Asda, allowing the retailer to source over 1.5 billion litres of milk from the dairy cooperative to fill its own-label milk and cream needs.
Last year, Asda became the first major grocery retailer to carry Arla’s responsibly sourced farmer-owned marque on pack, online and in-store. The new deal aims to ensure that this commitment continues until 2019, giving Arla farmers a sustainable home for their milk.
Peter Giørtz-Carlsen, Executive Vice President, Arla Foods UK, commented, "This is welcome news and we value Asda’s continued support for our dairy farmers."
He added that, "This demonstrates that we need to develop our industry by partnering with our retail customers and adding value. We look forward to working further with ASDA and supporting their commitment to our owners."
Meanwhile, Chairman of Asda Dairylink and Arla farmer, Martin Evans said, "The continual support that Asda has shown to Arla farmers across the country and its commitment to dairy should be commended."
Asda is also extending its DairyLink initiative, which has seen it work directly with Arla farmers to improve animal welfare, reduce carbon footprint and increase efficiency on farms.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Jenny Whelan. To subscribe to ESM: The European Supermarket Magazine, click here.
