AFMP farmer board in discussions to further invest in Arla Foods UK

Arla Foods amba has this week confirmed that it is to invest over £150 million in Arla UK’s new dairy on the outskirts of London. At the same time the farmer board of Arla Foods Milk Partnership, Arla UK’s direct milk supply group, has confirmed it is in discussions with the board of Arla Foods amba about making a further investment in the UK business. A final decision will be made following dialogue with farmer members of AFMP, in September 2010.

Commenting on its investment plans, Jonathan Ovens, chairman of Arla Foods Milk Partnership and its investment arm, Milk Partnership Ltd, said: "Arla Foods amba’s commitment to investing in the new dairy is another positive example of Arla securing a long-term future in the UK which in turn secures a home for AFMP members’ milk. Arla is making positive steps forward in the UK and it is important that we continue to play our part by working closely with Arla to build a sustainable future for farmer members, having made an initial investment in 2008."

Peter Lauritzen, CEO of Arla Foods UK, welcomed the move: "The amba board is fully supportive of AFMP farmers making a further investment in the UK business. As a farmer-owned cooperative it would be a positive step forwards, allowing UK farmers to work more closely with their Danish and Swedish counterparts by increasing their stake in Arla Foods UK plc."

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.