The farmer owned English dairy company Arla Foods has announced that it has signed a new three year long contract with Walmart owned supermarket giant Asda. As per the contract the dairy company would supply brand milk and cream to the retailer. Asda plans to source 1.5b litters of milk from Arla. Recently English supermarket Tesco announced its decision to replace its major milk supplier from Arla to Muller. Muller would now be supplying the Tesco with 200 million liters of milk.
Executive vice president of Arla Foods UK Peter Giørtz Carlsen said that the newly signed contract ensures Arla farmers with a sustainable market for their milk and the commitment is expected to last until 2019. “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,” Peter Giørtz Carlsen included.
Chairman of ASDA Dairylink and an Arla farmer Martin Evans said that news of signing the contract has brought a new enthusiasm among the farmers at a stage when the life on farm was turning extremely tough. ASDA is advancing its help by expanding the ASDA DairyLink groups, where it has been working in hands with Arla farmer owners to enhance the farm efficiency through reducing carbon footprint and improving animal welfare. The contract came in a time when Arla was planning to layoff around 500 staffs in regular payroll across Europe.