Tesco announced its decision to replace its major milk supplier from Arla to Muller where the latter would be supplying the supermarket giant with 200 million liters of milk. This declaration was made three days after Farmers for Action (FFA) said the retailer wanted to move 200 million liters from Arla to Muller. Discharging an announcement late on Friday, it didn’t reveal the accurate amount which would move over. Be that as it may, if the 200m liter figure proposed by FFA stays right, it implies Muller will have 700m liters of the 1bn liter. Tesco Sustainable Dairy Group (TSDG) pool will have the remaining volume.
Tesco said the arrangement with Muller Milk was a piece of its ‘dedication to make long haul, reasonable organizations over its supply base’. Tesco commercial director for fresh food Matt Simister said: “Developing trusted, long-term partnerships with our suppliers is central to providing the best quality for our customers. Tesco has a proud history of supporting British dairy farmers and this agreement with Muller Milk & Ingredients will create the most sustainable, progressive and customer-focused partnership in the dairy industry.”
Müller Milk and Ingredients Managing Director Andrew McInnes said: “Our fresh milk and ingredients business has been a key supplier to Tesco since 1993 and we are delighted to build on this long term partnership. “We aim to be the best milk and ingredients business in the UK and we share with Tesco a desire to place a strong emphasis on innovation, adding value, and quality and close collaborative working relationships throughout our supply chain from farm to factory to store.”
Tesco will keep up its long-standing association with Arla subsequent to agreeing another supply organization with the milk maker and will work intimately with makers adjusted to the TSDG. In an announcement, Peter Giørtz-Carlsen, official VP, Arla Foods UK, said: “While Arla is disappointed with the loss, Tesco continues to be an important and strategic customer. We have successfully strengthened the Arla business in 2015 through significant own label and branded volume growth in all categories as well as cost improvements. We are prepared and fit to meet the challenging market conditions.”