Arla welcomes Asda’s price increase & commitment to sign-up to its farmer-owned marque

Arla welcomes Asda’s price increase & commitment to sign-up to its farmer-owned marque
First major grocery retailer customer to agree nationwide pledge across all its liquid fresh milk
Industry-leading British cheddar labelling introduced to help customers to support British dairy farmers

Arla Foods UK has today confirmed that Asda’s increased price that it pays for milk, which came into effect this morning, will be shared directly with its farmer owners including 3,000 in the UK.

The retailer’s commitment to carry Arla’s new farmer-owned marque from the autumn on all of its own label fresh liquid milk along with new British cheddar labelling is also welcomed by Arla as a clear demonstration of Asda’s continuing and long-term commitment to British farming.

The product marque will offer consumers the opportunity to easily identify and trust that when they buy own label dairy products they are responsibly sourced from a farmer-owned business where all the profits go back to its owners, and has the highest expectations for animal welfare and environmental standards throughout its supply chain.

Asda is also reconfirming that it is committed to sourcing its own label cheddar using 100 per cent British milk from Arla. This will be supported by an industry-leading move with the introduction of new ‘Made with British Milk’ labelling on product packaging to provide clarity of sourcing.

Arla Foods amba farmer board director, Jonathan Ovens, met with Asda President and CEO, Andy Clarke, this morning to confirm the agreement, which includes new customer communication in all Asda stores to encourage its shoppers to buy British.

Jonathan Ovens commented: “As Arla farmer owners, we asked our major retailer customers to support our responsible sourcing principles and our transparent cooperative model. In announcing its wholesale price increase and carrying the farmer-owned marque, Asda has demonstrated its leadership in driving a solution to some of the challenges that the dairy industry is currently facing.

“Asda has a market driven wholesale price, mechanisms in place to deal with volatility and an ongoing long-term commitment for farmer owners, like myself.”

Andy Clarke added: “Asda was formed by dairy farmers, a heritage that we take seriously and that has informed our decision to make a substantial move to support farmers during the current global milk price crisis as well as agreeing a longer term package of measures going beyond liquid milk.”

Asda sources all of its milk from Arla across England, Scotland and Wales. Asda and Arla have had a ten year relationship which has made a substantial difference to its farmer owners and this is another significant milestone.

Posted in Press Centre on 17 August 2015