Dairy co-op merger offers single European supply

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Arla Foods amba and  Milk Link have proposed a merger which they reckon will create the largest player in the UK dairy market.

The two dairy co-operatives reckon they have complementary positions in key markets, brands and customer bases, Milk Link in the UK, and Arla in Europe.

The two organisations reckon the move will create the largest player in the UK dairy market, which will process over three billion litres of milk per annum and have a combined turnover in excess of £2 billion.

The proposal is subject to approval by Milk Link members, the Arla Foods amba board of representatives and relevant regulatory authorities.

Peter Lauritzen, chief executive of Arla Foods UK plc said: “Together we will be able to offer British retail and foodservice customers with a full range of high quality dairy products from a single, secure, source, making us an even more attractive partner for British retailers.”

* In January last year, Milk Link awarded Lloyd Fraser a five year contract for the collection and distribution of fresh milk across the South of England. Under the contract Lloyd Fraser is responsible for farm collection and onward logistics to Milk Link and a variety of customer facilities in the South of England.

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