Friday, July 8, 2022

Arla seeks investment from British farmers

Arla Foods proposes to offer milk suppliers in Britian the opportunity to purchase shares in the giant European dairy company as it looks for surety of supply from British farmers. Arla’s Board of Directors is proposing that the British supplier group, Arla Foods Milk Partnership (AFMP), through its investment arm Milk Partnership Limited, should become co-owners of Arla Foods from 1 January 2014. The aim being to strengthen the dairy cooperative further. Arla’s Board of Representatives will make its decision  in October.  From 1 January 2014, the cooperative dairy company, Arla Foods, is set to grow by circa 1,600 British dairy farmers. As a result, Arla will have almost 14,000 owners in Denmark, Sweden, UK, Germany, Belgium and Luxembourg.  Arla Foods Milk Partnership (AFMP), the supplier group, already supplies milk to Arla in the UK, and the group owns part of Arla’s UK business. Arla and AFMP announced  in the spring that negotiations concerning co-ownership were already underway. “Over the years, we’ve enjoyed a good partnership with AFMP, and in the past five-six years, AFMP has not only expressed its wish for co-ownership, but has also demonstrated a clear will to be owners with all that this entails.  The members of Arla’s Board of Directors are convinced that having AFMP as part of the owner group will strengthen Arla considerably,” says Åke Hantoft, Chairman of Arla Foods. It will cost an AFMP farmer 7.5 pence per litre of supplied milk to gain access to Arla (paid over two years).  “They are ready to make the investment,” adds Åke Hantoft. “This is because fundamentally, Arla and AFMP share the same view of the future: we believe that, as dairy farmers, a growing farmer-owned cooperative can give us the greatest security going forward,” says Åke Hantoft. ”The offer presents us  with an unrivalled opportunity to become an owner of Europe’s largest, and
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