Arla pledge to suppliers

- Last updated on GMT

Related tags: Arla foods milk, Milk, Powdered milk

Arla Foods has committed itself to buying 90% of its total milk requirements from Arla Foods Milk Partnership (AFMP), the group of milk suppliers to...

Arla Foods has committed itself to buying 90% of its total milk requirements from Arla Foods Milk Partnership (AFMP), the group of milk suppliers to Arla, within the next 12 months.

A new agreement between Arla Foods and its suppliers includes the establishment of an Arla Foods Milk Price Equivalent (AFMPE) based on the company's recoveries from two key commodities that link to liquid sales - skimmed milk powder and salted butter.

As a result, dairy producers will get a guaranteed minimum price of 2 pence per litre over the AFMPE calculated on an ex-farm basis.

"This new package reflects a strong partnership between AFMP and Arla Foods, with both parties determined to ensure that AFMP is a club farmers want to join," said Jonathan Ovens, chairman of AFMP.

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