5 October 2007

1 minute read

Europe

The rationale for a merger is to create an organisation that will deliver enhanced and sustainable returns for its Members, through an increased ability to add value to and secure profitable markets for their milk and milk products.

Milk Link and First Milk have already made significant progress towards providing a profitable and sustainable future for their Members. Both organisations believe that coming together presents a foundation to create a world class, British farmer-owned dairy business with the scale, expertise and ambition to compete with global players.

As part of the merger process, due diligence work has now commenced, and is expected to take a number of weeks. Once this work is completed, the Boards of both businesses will decide whether to recommend a merger. Any merger would be subject to approval by Members of both organisations, and the Office of Fair Trading.

First Milk and Milk Link are complementary in terms of their membership bases, processing assets, positions in key markets and customers The organisations have a combined turnover of around £1 billion, handle around 3 billion litres of milk a year, and are owned by 4,250 dairy farmers in England, Scotland and Wales.

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