Dairy Merger a Boost for the Industry, says the NFU

UK - The National Farmers Union (NFU) strongly endorsed the merger between UK farmer-owned business and dairy co-operative Milk Link with the European dairy co-operative Arla Foods.

23 May 2012

2 minute read

Europe

Mansel Raymond, NFU dairy board chairman, said the merger would lead to a stronger future for the industry.

“This is a hugely significant event and is the result of the patience, faith and commitment of Milk Link members who have been investing in their own future over the past 12 years,” he said.

“UK farmers have looked on enviously at the apparent disparity between UK and mainland European milk prices, but also at the strength of larger European dairy co-operatives which have used their scale and efficiency to command market leading prices and build market leading brands. This merger puts Milk Link members in a far stronger place with a more secure future.

“Arla Milk Link UK, the result of the merger will be a corporate member of Arla Foods with two positions for UK directors. This will be a truly European board to lead a truly European co-operative, in which UK farmers will have an equal stake.

“I’d like to congratulate the members and directors of Milk Link for making this opportunity a reality.”

Mr Raymond added that the deal, while not initially affecting the status or terms of AFMP farmers, lit a clear path for their potential future.

“The injection of a new force in the UK market for milk at farmgate will likely have positive implications for the wider UK dairy farming industry,” he said.

“The Arla Foods operations in the UK will have a broad and robust dairy category offer, which has the potential to command better returns for its members and suppliers – this is the strengthening of a UK business.”