Up to 1,600 British dairy farmers could become co-owners of Arla Foods under plans revealed by the dairy giant on Friday, 30 August.
Together with new changes to the Arla Milk Link merger conditions, the proposals could boost the number of British dairy farmer owners to 3200, 'who will all benefit from Arla’s overall objective of providing its dairy farmer owners with a more sustainable future', according to the company.
The plan, described by Arla as a 'roadmap to co-ownership', will strengthen the company's status in the UK as a co-operative body, according to Arla's board of directors.
If the plans do go ahead, Arla Foods Milk Partnership's investment company - Milk Partnership Limited (MPL) - will become a co-owner of Arla Foods from the beginning of 2014, with farmers who elect to join receiving the same membership rights as the existing 12,250 farmer owners, including Arla Milk Link farmers.
Commenting on the proposal, Jonathan Ovens, Chairman of MPL and AFMP, commented, “One of the founding principles of AFMP was to secure a home for every litre of members’ milk and we are delivering on this aim."
"I’m delighted that we have agreed the terms of the roadmap which offer circa 1,600 farmers the benefit of joining a major European cooperative that consistently pays one of the highest milk prices and a share of the profits."
"This move takes our ambition to the next level by providing the security of a milk price determined by European and world markets, from a well-balanced, well-invested, farmer-owned business, which has access to the global marketplace and operates across all dairy categories."
“Quite simply, Arla Foods amba is owned by farmers and run for the benefit of farmers. There is a natural alignment of our interests with the existing dairy farmers owners. I will be joining and I hope that fellow members will choose to join too,” he added.
Arla Foods is Europe’s largest dairy cooperative and the world’s sixth largest dairy company, with 12,250 dairy farmer owners.
1,600 of the 12,250 owners are British, a number which looks set to grow to around 3,200 from 1 January 2014 under the new plans.
See the full press release here
© 2013 - ESM: European Supermarket Magazine by Ellen Lunney
