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Supreme Court decision favours Arla Foods

Press Release   •  Jun 02, 2003 14:14 CEST

Denmark’s Supreme Court has decided in favour of MD Foods (the Danish predecessor of Arla Foods) in its verdict on a dispute between MD and a number of former suppliers to the Borden dairy company concerning compensatory amounts.
The former Borden suppliers, who joined Kløver Mælk in 1998, demanded additional payments in line with all other co-operative owners of Kløver Mælk following the dairy group’s merger with MD Foods. However, since the Borden suppliers had not supplied milk to Kløver Mælk for at least five years before the merger, they did not qualify for equal treatment with other Kløver Mælk co-operative owners.
The Supreme Court verdict means that MD Foods has won four out of five cases arising from the MD Foods-Kløver merger.