June 27, 2012

Milk Link and Arla merger well received

The proposed full merger of Milk Link and Arla Foods has been positively received from their respective farmer owners.

It means the full merger will now take place, subject to the necessary regulatory authority approvals.

The Milk Link member vote saw a high turnout of more than 83%, with 5,560 (99.53%) of the votes cast in favour and just 26 (0.47%) against.

Simultaneously, Arla Food's board of representatives also voted on the proposed merger and gave it their strong endorsement -96.8% for, 3.2% against.

Milk Link's 1,600 British dairy farmer members will become part owners of one of Europe's leading dairy co-operatives alongside Arla's existing Danish, Swedish and German farmers. 

As far as the UK is concerned, it will create the largest player in the dairy market, processing top side of three billion litres of milk per annum with a combined turnover in excess of GBP2 billion (US$3.1 billion).

Milk Link chief executive, Neil Kennedy, said the vote provided real momentum for the growth and development of the merged business going forward.

Arla Foods UK chief executive, Peter Lauritzen, said Milk Link members would be able to achieve, after a transitional period, the same level of return as existing Arla Foods amba members in other parts of Europe.