Joint Venture to Boost British Dairy
UK - The formation of a joint venture company by Arla Foods Milk Partnership and Arla Amba will provide a boost for British dairy farmers, National Farmers Union Cymru said today.
15 May 2008
2 minute read
NFU Cymru President, Dai Davies, said the move was a positive one for the dairy industry and the new business structure would bring British, Danish and Swedish farmers closer together.
The move would also give British farmers greater influence over the strategy and performance of the business in the long term and demonstrated a commitment from Arla to source all of its milk from British farms.
Through the Milk Partnership Limited, farmers will be investing £15 million in the joint venture company and the news that members’ outstanding capital will be paid back as a dividend on farm before the end of June will be welcomed.
Dai Davies said: “Arla producers in the UK represent a third of Arla Amba’s total business. This announcement makes British farmers more than just shareholders in a company. For the first time farmers, through the AFMP will have a proper insight into Arla UK’s business, with a say in the long-term direction of the company. With milk in short supply it is clear that Arla has realised it can’t keep its farmers at arms length.
“An important part of this new structure is about Arla demonstrating a commitment to sourcing all of its milk from British farmers. We operate in a single European market and to compete effectively in that market we need to get closer to our European counterparts. The Union already does this through the European farmers’ organisation COPA, but it’s important that this also happens commercially, through businesses such as Arla, particularly in terms of replicating the transparency and seamless operation of EU supply chains. We hope that this new venture marks the start of a long-termer term ambition for the AFMP to become a bigger player in the Arla Amba business.”
TheCattleSite News Desk
