Scandinavian and British dairy farmers unite in joint venture

Almost 11,000 Danish, Swedish and British dairy farmers are uniting in a joint venture that will see farmers within Arla Foods Milk Partnership (AFMP) become part owners of Arla Foods UK through its investment company, Milk Partnership Ltd (MPL).

Under the joint venture a new company will be established, which will hold a 7% share in Arla Foods UK. Arla Foods amba and MPL will each take a 50-50 stake, with money invested by MPL helping to fund further investment in Arla UK’s processing business.
Jonathan Ovens, chairman of MPL and AFMP, says: “This investment represents completion of MPL’s second stage of investment in our milk processor. We believe that the 1ppl investment balances our commitment to Arla against a need not to create a barrier to entry to new members, and for the first time, equalises the investment by all members and returns excess investment to members over the 1ppl level.”
The joint venture company board will have equal representation from both MPL and Arla Foods amba. Due to MPL’s previous investment in Arla Foods UK, the majority of farmers have already paid in full for their original share allocation. Any overpayment will be returned to members. New members joining the Partnership will pay a 0.2ppl levy, through MPL, over a five-year period, to bring their total investment to one penny per litre.