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Arla Foods’ EGM Walhorn merger expands dairy farmer partnership

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By Jenny Eagle+

Last updated on 06-Aug-2014 at 11:38 GMT

Arla Foods’ EGM Walhorn merger dairy farmers

Arla Foods’ status as a multinational farmer-owned dairy company has been reinforced by its EGM Walhorn merger taking on the Netherlands.

The region is now the seventh European country in which Arla Foods has farmer owners, taking its number to approximately 13,500.

Profit is returned to farms

Peder Tuborgh, CEO, Arla Foods, said for every farmer who belongs to the company means securing the development of their farm.

Our dairy farmers can and want to set the pace, to ensure that profit is returned to their farms and into the company, as investments into our global dairy business,” he added.

We do this together as one big multinational team of dairy farmers and employees.”

DairyReporter reported last month, Arla Foods got the green light by relevant competition authorities to complete its merger with EGM Walhorn.

Tim Ørting Jørgensen, VP/director, Arla Central European operations, said at the time the deal would provide opportunities for the business not only in terms of an increased supply of raw milk, but as a platform for increased export to growth markets outside the EU.

Cross border cooperation

Arla Foods’ cross border cooperation between dairy farmers started in 2000, when Swedish dairy cooperative Arla merged with Danish dairy company MD Foods.

In 201, it merged with Hansa Milch in Germany and in 2012 with Milch-Union Hocheifel (MUH) in Germany and Milk Link in the UK.

In 2013, AMCo UK members also joined as Arla Foods’ co-owners.

Åke Hantoft, farmer owner/chairman, Board of Directors, Arla Foods, said the company has continuously managed to attract more farmer owners and to work together across borders.

Being an Arla Foods farmer owner means having the guarantee that, no matter which country we are based, our milk will be turned into products sold all over the world,” he added.

The more farmers we are, the more milk we produce, and the stronger we become together in serving the world great dairy products.”

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