UK – Two of Britain’s largest milk co-operatives have this week announced their intention to merge.

Zenith Milk and the Milk Group announced the plan on Monday (14) to the Semex conference in Glasgow.

The new company, which is yet to be named, would control around 19% of raw milk in England and Wales. Before its split in 2000 Milk Marque, of which zenith was a part, controlled around 40% of the country’s raw milk market.

Zenith Milk, which operates throughout the north of England, is one of three regional co-ops in the UK created by the break-up of Milk Marque in 2000. With around 3,000 members, it produces 1.2 billion litres of milk annually, but is not involved in processing.

The Milk Group also produces 1.2 billion litres of milk every year but has also moved into the processing market to try to add value to co-operative members’ milk. In 1997, the Milk Group bought ingredients supplier Nene Valley Foods and in November 2000 it bought Lubborn Cheese for