At a meeting in Denmark today (9 October 2013) the Arla Foods Board of Representatives, which includes elected members from all owner countries (Denmark, Sweden, the UK, Germany, Luxembourg and Brussels), approved the proposal for MPL (AFMP) farmers to become co-owners of Arla Foods amba from 1 January 2014.
In addition, at the same time, the Board of Representatives approved the proposal for AML to receive the supplementary (13th) payment in 2014, two years ahead of the original merger agreement. Today's decision means that AML farmer owners will receive the supplementary payment from 2015, on milk supplied to the cooperative during 2014, and ongoing thereafter.
Commenting on the decision, Jonathan Ovens, Chairman of AFMP and MPL, said: "I am absolutely delighted that the proposal for MPL farmers to become co-owners of the cooperative has received the approval of Arla Foods amba. This demonstrates the strategic importance of the UK for amba and is a reflection of the 20 year relationship that we have had with our processing partner.
"The next steps for MPL farmers is to sign and return their new supply contract by 15 November to guarantee ownership of Arla Foods amba. We have been given a ceiling of 1.8 billion litres of milk. Should this figure not be met, Arla will recruit new members up to that ceiling. I would urge farmers interested in becoming owners of the European dairy cooperative to sign and return their contract and for farmers who currently do not supply Arla to make contact to register their interest."