Express Milk may build a stake in Arla
Arla Foods. The group announced on Wednesday that a stake in the
company could give the company an advantage in the market place.
The Express Milk partnership is a farmer organisation that sells milk to Arla Foods. It claims that it could raise up to €65 million for an investment in Arla which it says would protect the interests of its members.
Chairman of the Express Milk partnership, Jonathan Ovens, told a Reuters reporter that "in the fairly near future we could begin to build a stake. We're conscious of the fact that the major retailers, who are our joint customers, are looking for the farmers to become more involved. We see it as the right was forward for us".
Arla Foods now enjoys a 25 per cent market share of the UK milk sector, and it is believed that its recent merger with Express Dairies has influenced the growth.
"The integration between Arla and Express is going according to plan and hopefully we will be able to make an announcement as soon as practicable but we do not expect anything in the short term," a company spokesman said.
Arla Foods is Europe's largest farmer owned dairy co-operative. Express Dairies has a 51 per cent share hold in the company. By building a stake in the Arla Foods the company hopes to strengthen its market position through generating growth through its business.
