You are viewing 1 of your 2 free articles

You’ll need to join us by becoming a member to gain more access.
Already a Member?

Login Join us now

'Producers have to benefit from it' - Morrisons agrees exclusive three-year-deal with Arla

The co-operative will supply Morrisons’ own-brand liquid milk from March 2018.

Twitter Facebook
Share This

Morrisons agrees exclusive three year deal with Arla #teamdairy

Morrisons has announced a three year contract with Arla to exclusively supply its own-brand liquid milk from March 2018.

Michael Oakes, NFU dairy chairman, said it was good news for Arla farmers if the contract had been secured for the right reasons.

“Let us hope Arla won the contract for reasons of service and something other than price,” he said.

He warned if it was purely due to low prices, farmers would be the ones hit by it.



While Morrisons previously sourced the majority of its milk from Arla, a minority was purchased from Muller, which took over the contract when it purchased Dairy Crest Dairies.

Steve Newbould, Morrisons head of trading - dairy, said: “We believe this agreement will be simpler for our business and will help to develop a sustainable dairy sector.”

He added the processor wanted to work closely with farmers on ‘a range of sustainability and animal welfare measures’.

George Jamieson, NFU Scotland milk policy manager, said the union wanted any deals to take into consideration a fair return for farmers.

“Morrisons were happy to discuss with us. They are keen to promote themselves as a business which works well with producers,” he said.

“They reassured us it was not solely to do with price; the implication was, it was partly due to Arla being a co-operative.”



Morrisons also committed to enhancing its regional and local milk offering as part of a wider commitment.

Mr Jamieson said this was good news for producers.

“But what we are striving for are contracts which are fair to everybody. Producers have to benefit from it,” he said.

Mr Oakes added he hoped Morrisons would work to soften the impact on Muller farmers.

“It is not until next March so it gives Muller time to readjust,” he said.

“They will want to keep their market share.”




A spokesman for Muller said it had ’no impact’ on its milk field.


“Morrisons remains an important and valued customer for our business and we continue to provide a range of Muller branded dairy products including FRijj flavoured milk and our range of yogurts and chilled desserts, to support their dairy category offering to consumers.”

Twitter Facebook
Rating (0 vote/s)
Post a Comment
To see comments and join in the conversation please log in.

More News

Michael Gove: UK will not accept chlorinated chicken as part of US trade deal

Secretary of State Michael Gove has said the UK would not ’dilute’ its higher welfare and environmental standards in pursuit of a US trade deal.

'Humane milk is a myth' - complaints dismissed surrounding anti-dairy advert

Complaints have been dismissed surrounding an anti-dairy advert which claimed ‘humane milk is a myth’.

Top Tory MEP tells people to ‘stop moaning’ about chlorinated chicken

Top Tory MEP and Telegraph columnist Daniel Hannan has caused outrage by telling people to ‘stop moaning’ about chlorinated chicken entering the UK after Brexit.

Late farm payments putting cross-border farmers under ‘extreme financial pressure’

Farmers with land on both sides of the England-Wales border have been left facing extreme financial hardship as a result of late farm payments.

Farmers given right to continue badger cull as Government consults on future TB strategy

Farmers in Somerset and Gloucestershire have been given the right to continue culling badgers to keep on top of bovine TB.
FG Insight and FGInsight.com are trademarks of Briefing Media Ltd.
Farmers Guardian and FarmersGuardian.com are trademarks of Farmers Guardian Ltd, a subsidiary of Briefing Media Ltd.
All material published on FGInsight.com and FarmersGuardian.com is copyrighted © 2016 by Briefing Media Limited. All rights reserved.
RSS news feeds