3rd Apr 2007 12:18
Arla Foods UK PLC03 April 2007 03 April 2007 Arla Foods UK plc Arla welcomes Tesco's direct deal for British dairy farmers Arla Foods UK plc, which supplies 40 per cent of Tesco's milk, welcomes theannouncement that Tesco is to offer direct long-term contracts to named Britishdairy farmers raising the price farmers receive to around 22 pence per litre. Arla Foods UK plc supplies approximately 600 Tesco stores with over 370 millionlitres of fresh milk each year. In relation to today's announcement from Tesco, Tim J Smith, Chief Executive ofArla Foods UK plc said today: "We are delighted with this development. Tesco hasprovided a bold and creative step to help the dairy farmers who provide Tesco'scustomers with high quality milk. "Although this move will have no financial effect on our own business, we willwork with Tesco and Arla Foods Milk Partnership to quickly put in place thenecessary systems and processes to ensure the earliest possible implementationof the new arrangements. "We are confident the exciting new pricing deal will allow the AFMP members botha much improved financial return and the confidence to further invest in theirenterprises." Jonathan Ovens, Chairman of the Arla Foods Milk Partnership commented: "Ibelieve that the members of AFMP will be delighted by the scale of theinvestment being promised by Tesco. We are today celebrating a significantimprovement in the future prospects of those members whose milk will be part ofthis programme. We wholeheartedly support this move and thank Tesco for itscommitment to us." -Ends- For further information, please contact: Arla Foods UK plc 0113 382 7000Tim Smith, Chief Executive Hudson Sandler 020 7796 4133Michael Sandler / Amy Faulconbridge Notes for editors: 1. Arla Foods sites at Oakthorpe (north London) and Stourton (Leeds) process pack and distribute fresh milk to Tesco every day. 2. Arla Foods Milk Partnership is comprised of over 1,600 dairy farmers who are contracted to supply all their milk to Arla Foods UK plc. By October 2007 their supply will represent 90 per cent of the total milk required by Arla Foods. Approximately 350 members will be affected positively by Tesco's announcement. On average, each produces just over one million litres per annum. This information is provided by RNS The company news service from the London Stock Exchange ENRelated Shares:
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