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.
This meant the cost of balancing passed to the larger supplier, AFMP
They also demanded the removal of the word 'partnership' and agreed to seek NFU advice that could lead to them taking legal action against AFMP
The division is significant because it is the first time Arla and AFMP
have failed to agree on price movements.
The development means that from September, AFMP
will supply 75% of Arla's milk requirements, or 1.
From July 1 the AFMP
standard litre price increased by 0.
From June 1, 2007, the AFMP
standard litre price will increase by 0.
In a letter to all AFMP
producers, Peter Walker, Arla's director of milk buying, said that the increase was made possible because the company was passing back to producers all monies recovered through recent negotiations with its customers to reflect extra on farm costs.
Securing more of our milk needs from AFMP
farms enables us to respond to the demands of our customers for high quality, farm assured and traceable milk," said Peter Walker, director of milk buying at Arla Foods.
The agreement, between Arla and its AFMP
suppliers, incorporates an immediate price reduction of 0.
From September, the Partnership will supply 75% of Arla's milk requirements, and AFMP
is continuing to recruit producers to meet the demand.
Finally, we pointed out that the AFMP
board had agreed our pricing position and therefore, Arla saw no justification for any disruption of supplies or other action from any farmer members of the groups present at the meeting.