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Arla To Merge With Milk Link

arla milk logo

12:25pm 22nd May 2012

The company behind Cravendale, Lurpak and Anchor, Arla has today announced it's to create the UK's largest dairy concern.

The co-operative boards of Arla Foods and Milk Link have announced the merger today - which will create the largest player in the UK dairy market, processing more than 3 billion litres of milk a year - and have a combined turnover in excess of £2 billion.

This merger builds on Arla’s ambition to invest in the UK and currently processes around two billion litres of milk a year - supplying milk, cream and dairy products to the major retailers.

Arla is building the world’s largest fresh milk processing facilities Aston Clinton.

Peter Lauritzen, chief executive of Arla Foods UK plc told Mix 96: "The enlarged business will be focused on delivering a sustainable future for our farmer owners. It will mean that the largest and most progressive dairy business in the UK will be owned by Milk Link and Arla Foods amba farmers, as well as by Arla Foods Milk Partnership members, through their shareholding in Arla Foods UK plc, via their investment company, MPL."

"Arla has a strong record of investing in facilities and brands in the UK. Together we will be able to offer British retail and foodservice customers with a full range of high quality dairy products from a single, secure, source, making us an even more attractive partner for British retailers. As such, the merger will be good for our farmers, our customers and their consumers and, ultimately, the British dairy industry."

Neil Kennedy, the Chief Executive of Milk Link told Mix 96: "The proposed merger has been unanimously endorsed by the Milk Link Board with the full support of the Milk Link Member Council and we strongly believe that it will create a strong platform for a sustainable future for Milk Link Members and the long term growth of a vibrant British dairy industry. Milk Link’s 1,600 British dairy farmer Members will have a stake in one of Europe’s largest and most successful dairy businesses and play a positive role in its future development. Our farmers will benefit from Arla Foods amba’s long term strategic vision, global scale, broad product and customer base and proven track record in investing in the development and growth of leading dairy brands."

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