Each farmer is a member of Asda Dairylink, a dedicated group of Asda producers within Arla Foods Milk Partnership
Each of the 17 farmers is a member of Asda Dairylink, a dedicated group of producers within Arla Foods Milk Partnership
It has two contracts for those signing up to the business - Arla Foods Milk Partnership
(AFMP) contract, which requires investment and is a co-operative deal, and the new Arla Direct contract, which does not require the investment or include shared ownership options.
Arla Foods Milk Partnership
chairman Jonathan Ovens has become the latest industry figure to predict that the amount they paid farmers would soon top 15p per pint.
When Arla Foods Milk Partnership
raised the amount it paid farmers by 5p a litre in August, major customer Tesco raised shelf prices by 8.8p a litre.
Swedish-Danish dairy group Arla Foods said on Tuesday (21 August) that it has decided to increase the producer milk prices in the UK, increasing its payment to its supply group, Arla Foods Milk Partnership
, by GBP0.495 per litre to GBP0.25 per litre.
It means new suppliers can choose either the Arla Direct contract or the Arla Foods Milk Partnership
contract, in which farmers can become members of Arla Foods amba.
"We believe it is our duty to take over the baton and deliver a price and a sustainable sourcing strategy that step changes the returns for our members, restores confidence and takes a major step in moving Arla Foods Milk Partnership
towards the co-operative model of Arla Foods amba, where all farmers benefit equally from the returns from our customers."
During the first year they will be Gwyn Jones and Wesley Abbey, vice-chairman of Arla Foods milk partnership
Chairman of the Arla Foods Milk Partnership
, Jonathan Ovens, said: "Farmers simply cannot afford to go into the winter making a loss of 5ppl."
"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.