Arla is hoping its focus on innovation can help mitigate the volatility in its milk price.
The co-operative has opened its new innovation centre in Denmark and said it was aiming to become the ‘most collaborative innovator in the global dairy market’.
Peder Tuborgh, chief executive of Arla foods, said in today’s competitive dairy market ‘the best innovator wins’.
Arla farmer Mags Crozier, Hartlepool, said she believed Arla would be able to use its research and development to get more value out of milk so her price was not ‘dependent on the highly competitive, fresh milk market’.
“Innovative new products and packaging are allowing Arla to open up new markets, especially in Africa,” she said.
“This has the potential of removing excess milk out of the current markets.”
“Innovative new products and packaging are allowing Arla to open up new markets”
- Mags Crozier
She added new innovation had already helped increase the value of products in utilising ‘waste’ products such as whey from cheesemaking.
“Eventually we may find that we get more value out of the whey than we do the cheese, effectively making cheese the by-product,” she added.
Arla’s aim was to become a ‘household brand’ by 2020 and Mrs Crozier said it was ‘great’ the public were buying into the branded milk range.
“The public are now so interested in finding out more about their food and I think it is great that a simple chat about the farm and dairying can actually directly help improve my own milk price.”
Mrs Crozier added she was optimistic for the future as an Arla member.
“Arla gives us the security to continue and to invest in our family farm,” she said.
“We like that as farmers and owners we can gain benefit from the maximum amount for our milk and there is no-one else, such as shareholders, profiteering from our hard work and individual investment.”