A WEEK after losing a major milk supply deal with Tesco, dairy co-op Arla has confirmed a new three-year contract with ASDA to continue supplying the supermarket giant with its own-brand milk and cream.
The new agreement will see ASDA sourcing over 1.5 billion litres of British milk from Arla – but a co-op spokesman said that there would be no requirement to recruit more producers, and that the deal would not change anything for its Scottish members.
Last year, ASDA was the first major grocery retailer to carry Arla’s ‘farmer-owned’ marque. This week’s announcement continues that commitment until 2019 and, said the co-op, provides Arla’s farmer-owners with a sustainable home for their milk.
Arla Foods UK executive vice president Peter Giørtz-Carlsen said: “This is welcome news and we value ASDA’s continued support for our dairy farmers. This demonstrates that we need to develop our industry by partnering with our retail customers and adding value. We look forward to working further with ASDA and supporting their commitment to our owners.”
ASDA Dairylink chairman and Arla farmer Martin Evans added: “The continual support that ASDA has shown to Arla farmers across the country and its commitment to dairy should be commended. Life on farm is extremely tough at the moment and this news is exactly what our farmers need.”