UK – Arla Foods UK has said that it will close its regional distribution centre at Stratford, London in April and that it is ready to begin supplying Scottish supermarkets.

Planning permission for Arla’s new dairy at Lockerbie, Scotland, was granted before Christmas and the company has a contract to sell Scottish branches of Asda supermarkets.

The company said that inflation has increased its costs by 1 pence per litre (1.4 euro cents) in recent months and that it has “have begun price negotiations to recover this from the market”. It will review its milk prices on 1 April.

Arla Foods UK chief executive Neil Davidson has said that we will retire on 30 September. Meanwhile non-executive board member Kim Nielsen has said that he is resigning from 30 April but continue his role with the Scandinavian arm of Arla.