UK - Westbury Dairies Limited, the joint venture between Arla and First Milk, has now transferred full ownership to Arla.
Peter Giørtz-Carlsen, Executive Vice President, Arla Foods UK said: “We are pleased to have come to this agreement. Arla has just launched Strategy 2020 in which we aim to grow our business in eight global dairy categories and six market regions around the world.
"The Westbury site is now an integral part of that global network of Arla production sites and will benefit from being so, further helping the UK to play an even more significant role in our global strategy.”
This decision represents a consolidation for First Milk who look to continue to reshape their business, but the National Farmers Union (NFU) said important questions now remain over how this will improve the bottom line for dairy farmers and the effect it will have on farmgate prices.
NFU chief dairy adviser Sian Davies said: “It is pleasing that Arla and First Milk have agreed a deal which suits their particular business models. As with any change to operating systems, we now need to ensure that this strategic move contributes to delivering a better return to farmers, as well as increased stability.
“Farmers supplying First Milk are still in a particularly difficult place and urgently need to see better returns from the reshaping of the business.”
NFU will continue to work closely with First Milk and its new Chairman Clive Sharpe as well as with Arla in these new arrangements to ensure the best deal for British farmers.
TheCattleSite News Desk