AFMP members incentivised to increase production during autumn trough

Arla Foods is encouraging Arla Foods Milk Partnership (AFMP) members to increase milk production in the autumn trough by paying a 5ppl supplement on every litre of milk supplied over and above a member's base average daily production (BADP) figure during September, October and November 2008.

Commenting on Arla's decision to incentivise members, Hanne Sondergaard, deputy chief executive for Arla Foods UK, said: "We have a deficit of milk between September and November each year, when milk production is typically at its lowest. This, in previous years, has led to us purchasing volume on what can be an expensive spot market.

"We would prefer AFMP members to receive this benefit rather than it being paid to suppliers in the spot market and we have agreed with the Partnership that members will be offered a financial incentive to produce additional volume over and above their BADP, during the 2008 trough months."

Jonathan Ovens, AFMP chairman, adds: "I'm delighted that Arla Foods has demonstrated its commitment to Partnership members through this initiative. We are informing producers immediately to give them the opportunity to plan ahead if they wish to maximise the financial benefit from this incentive."

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.