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Arla secures ASDA milk business

Press Release   •   May 26, 2004 12:18 BST

Arla Foods UK plc, the UK's leading dairy company, is to become sole supplier of fresh liquid milk to ASDA.

As part of the contract, milk will be produced by a dedicated group of British farmers within Arla Foods Milk Partnership (AFMP). Established in 1994, AFMP is a unique and dedicated group of over 1300 British farmers which supplies its milk direct to Arla Foods. This unique partnership that Arla has with these farmers will enable ASDA to have a direct relationship with every single farmer who supplies milk to the retail chain.

Arla's milk pool is one of the largest in Britain with farmers stretching from the south west of England to the north east of Scotland. Over half of Arla's raw milk requirements are currently supplied by AFMP.

Arla's director of milk buying, Peter Walker, comments: "Arla is able to provide ASDA with a segregated supply chain which utilises a dedicated group of farmers. This will enable ASDA to have full traceability of fresh milk from cow to consumer."

Wes Abbey, vice chairman of AFMP, who will be leading the Partnership farmers in this initiative, added: "From the onset of the Partnership in 1994 our plan has been to work in collaboration with a processor to bring us closer to the retail market. This unrivalled relationship which we enjoy with Arla Foods has allowed ASDA to be the first major multiple to have a segregated supply of fresh British milk."

The contract to supply 265 ASDA stores will commence later in the year.

Arla Foods UK plc is home to some of the UK’s leading dairy brands including Cravendale, Lurpak and Anchor. Processing approximately two billion litres of milk a year Arla continues to be one of the UK’s leading dairy companies and a supplier of fresh liquid milk and cream to the top seven retailers.

Over 2,500 daily deliveries are made directly to stores nationwide and Arla brands can be found across the dairy category. As well as the leader of the butter, spreads and margarine sector, and a major supplier of other added value products including flavoured milk and cheese, Arla continues to build working relationships with Arla Foods Milk Partnership, a unique group of dairy farmers, which supplies around 90 per cent of Arla's total milk requirements.

Behind this leading business is a team of circa 2,800 people across the UK located at our dairies, distribution centres and head office.