Arla Foods has entered into talks with supplier organisation, Arla Foods Milk Partnership (AFMP), to define what it required for AFMP members to become owners of Arla Foods UK.
Arla Foods UK is currently supplied by three groups – Arla Milk Link, direct suppliers, and AFMP members. AFMP members own part of Arla Foods UK through its investment company, MPL, but have long sought to become full owners of the company – on par with Arla Milk Link.
“Real negotiations can only begin when we have a plan for what is required,” said Arla Foods chairman Åke Hantoft.
“The work we’re now embarking on confirms that both parties share the ultimate objective that, in the future, we will be able to offer full ownership to the AFMP members who want it and who can comply with the terms of the offer,” he added.
AFMP chairman, Jonathan Ovens has welcomed the initiation of talks with Arla.
“Over the past 19 years, Arla Foods Milk Partnership has enjoyed a close relationship with Arla. A decade ago, in 2003, we made our first investment in Arla UK, through our investment arm, MPL, and in January 2012, began increasing our investment. We welcome this major new development.”