Statement from the Board of Directors of Arla Foods amba

Today the Board of Directors of Arla Foods amba has received notification from the UKAF board (the farmer governing body of Arla Foods’ UK cooperative) that it has taken the decision to terminate the membership of Mr Jonathan Ovens.

On behalf of the Board of Directors of Arla Foods amba, chairman Åke Hantoft states:

“As a consequence of the decision taken by the UKAF Board to terminate the membership of Mr Jonathan Ovens, which the Arla Foods amba Board agrees with, Mr Ovens is no longer eligible to serve as a board member of Arla Foods amba and therefore leaves open a position as UK representative on the Arla Foods amba Board of Directors.

The due process to elect the replacement to the Arla Foods amba Board of Directors will now commence and the UKAF board, governed by its byelaws, will discuss what steps are required to fill the open position.

Arla Foods amba will communicate to its members when a replacement is confirmed.”

Statement from UKAF Chairman Johnnie Russell

Regarding the decision made by the UKAF board today, UKAF chairman Johnnie Russell issued the following statement earlier today:

“Today, the UKAF board (the farmer governing body of Arla Foods’ UK cooperative) has taken the decision to terminate the membership of Mr Jonathan Ovens, trading as D Mortimer & Sons. This regrettable step has had to be taken as a last measure in a protracted process to resolve issues of corporate governance within Emerald Debtco Limited and takes place with immediate effect. Mr Ovens has been offered a direct contract by UKAF for the supply of milk.

As part of the wider Arla Foods amba Cooperative owned by over 11,000 farmers the UKAF Board must act in the best interests of both its UK farmers and all Arla Food’s farmer owners across Europe and in accordance with the Arla Foods Corporate Social Responsibility guidelines. It has been determined that serious failings in corporate governance by Mr Ovens in his role as Chairman of Emerald Debtco Limited are prejudicial to the interests of the Cooperative. These actions also led to a loss of confidence in Mr Ovens by the Arla Foods amba Board of Directors, which supports the UKAF decision.

The decision means that Mr Ovens can no longer remain part of Arla Foods UK or a board member of Arla Foods amba and therefore leaves open a UKAF board position and that of a UK representative on the Arla Foods amba Board of Directors.

The UKAF board, governed by its byelaws, will discuss what steps are required to fill the open positions and will communicate to its members when the process has been decided.”