Press release

Arla Foods press release

Arla Foods initiates process expected to lead to AFMP members acquiring part ownership of UK business

Arla Foods is initiating a process which it hopes will lead to members of Arla Foods Milk Partnership (AFMP) acquiring part ownership of Arla Foods' UK business.

Arla Foods UK CEO Peter Lauritzen has invited AFMP to nominate and brief a negotiating team of producer directors to engage in substantive discussions.

"Arla Foods wanted to move quickly to follow up the statement of intent made when its acquisition of Arla Foods UK plc completed in April this year," said Peter Lauritzen. "We anticipate a structure through which members of the Partnership will acquire part ownership of the UK business, alongside Arla Foods amba.

"Arla Foods amba is a farmer owned business and when it announced that it was taking full ownership of Arla Foods UK plc, it committed to strengthening its relationship with UK farmers. This move underlines that the company wants to take that sentiment beyond words and give UK farmers the opportunity to acquire part ownership of the UK business.

"There is much work to be done and we hope this will lead to our direct milk suppliers taking part ownership of the UK business."

Jonathan Ovens, Chairman of AFMP, welcomed the announcement. "This is excellent news for our members and will hopefully give us all the opportunity to join a family of farmer shareholders in one of Europe's leading dairy businesses. Discussions will start straight away and we will be working hard to reach a decision on what is bound to be a range of very complex issues," said Mr Ovens.

Arla Foods UK plc is home to some of the UK’s leading dairy brands including Cravendale, Lurpak and Anchor. Processing approximately two billion litres of milk a year Arla continues to be one of the UK’s leading dairy companies and a supplier of fresh liquid milk and cream to the top seven retailers.

Over 2,500 daily deliveries are made directly to stores nationwide and Arla brands can be found across the dairy category. As well as the leader of the butter, spreads and margarine sector, and a major supplier of other added value products including flavoured milk and cheese, Arla continues to build working relationships with Arla Foods Milk Partnership, a unique group of dairy farmers, which supplies around 90 per cent of Arla's total milk requirements.

Behind this leading business is a team of circa 2,800 people across the UK located at our dairies, distribution centres and head office.

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