Arla shows co-operative difference on its products

Arla-branded products will carry a new “Farmer Owned” marque from autumn in an attempt to show its co-operative difference. It is hoped the move will help deal with the...

Arla-branded products will carry a new “Farmer Owned” marque from autumn in an attempt to show its co-operative difference.

It is hoped the move will help deal with the serious challenges facing milk farmers this year. As milk prices continue to fall, hundreds of British farmers are being forced out of business, with the total number of dairy farmers in the UK dropping below 10,000.

Arla Foods UK, part of a global dairy co-operative which is owned by 13,500 dairy farmers, 3,000 of whom are British, has created the marque to increase customers’ awareness of the nature of the business.

Ash Amirahmadi, head of milk and member services, said: “Our Farmer Owned marque is the natural step following on from our Support Our Farmers campaign and the launch of the Arla brand earlier this year.

“While we cannot reverse the global factors it will play an important role in minimising the impact of this downturn and ensure that our business is in a strong position for when markets start to recover.”

Arla is also organising meetings across the UK to enable British farmer owners to express their concerns and ideas regarding the promotion of the benefits of purchasing dairy products produced by a co-operative.

Jonathan Ovens, farmer board director at Arla Foods amba, added: “I have been travelling across the country listening to our owners and I am hearing loud and clear that our farmer owners support the launch of this marque.

“Our co-operative principle of standing shoulder to shoulder means that we fundamentally believe that any benefits that are derived from our business are shared equally amongst every single one of our farmer owners, for the benefit of all.”

The marque has already been displayed on Arla’s milk tankers, which collect over 3bn litres of milk per year from its British farmer owners. The co-op has also reached an agreement with Asda, which will carry the marque from autumn on all its own-label fresh milk, along with new British cheddar labelling. The increased price Asda pays for milk will be shared directly with Arla’s farmer owners.

While milk prices continue to drop, Arla Foods announced it would maintain its price for September for its 13,500 farmer owners, including the 3,000 from the UK.

Mr Amirahmadi added: “We are in a position to hold our milk price for September, based on our current and future business performance.

“However, we must remain cautious; the global dairy market remains volatile and it is too early to indicate whether the tide has turned because farmer milk production remains high on a global level, against a backdrop of restricted demand.”

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