This is Devon --
Somerset dairy farmer and board director of Arla Milk Link and Arla Foods co-op
We are six months into the merger and now is a good time to take stock of how it is progressing.
Milk Link was in a position where it was starting to deliver to its members and influence the marketplace, but it needed to gain in size and strength to continue to increase the returns to its members.
The board believed that the merger with Arla Foods co-op would establish a platform for improved returns for all members and would deliver, after a necessary transition period, improved financial returns. This would be achieved through global scale, access to markets and proven track record in investing in the development and growth of leading dairy brands.
These were elements to which Milk Link aspired but couldn't deliver in its own right, due to its smaller scale.
In the short term, some things have not gone as we anticipated. Historically, European milk prices have been higher than those in the UK. However, while we were waiting for regulatory approval last summer, prices increased in the UK, turning the European hierarchy of milk prices on its head.
But given that none of the fundamentals within the UK processing sector have changed, it is hard to see why this hierarchy will not be re-established.
Some members argue that the deal wasn't as good as it was laid out to be, but I disagree. The Arla Milk Link milk price is there or thereabouts where we were expecting it to be and we are only six months into a three-year transition period to achieve the same benefits as our farmer colleagues in Denmark, Sweden and Germany.
In addition, as owners of a European co-operative, we can prepare for the challenges facing the dairy industry post-2015. While the UK is well below quota and volumes will not increase dramatically in the near future, production across Europe could rise by as much as 2.5 billion litres.
Arla has defined a strategy to find a valuable home for members' milk, post-2015, in the growth markets outside of Europe. This long-term foresight is what is needed to be successful and get the best returns for members.
We are part of a leading co-operative and I am convinced that we have taken the correct route. Milk Link members voted overwhelmingly for the merger with Arla.
We saw the benefits that working together could bring and I believe that farmers will only get a fair return from the market in the long term if they are part of a professionally run and managed, vertically integrated, global dairy co-operative. Reported by This is 15 hours ago.
Somerset dairy farmer and board director of Arla Milk Link and Arla Foods co-op
We are six months into the merger and now is a good time to take stock of how it is progressing.
Milk Link was in a position where it was starting to deliver to its members and influence the marketplace, but it needed to gain in size and strength to continue to increase the returns to its members.
The board believed that the merger with Arla Foods co-op would establish a platform for improved returns for all members and would deliver, after a necessary transition period, improved financial returns. This would be achieved through global scale, access to markets and proven track record in investing in the development and growth of leading dairy brands.
These were elements to which Milk Link aspired but couldn't deliver in its own right, due to its smaller scale.
In the short term, some things have not gone as we anticipated. Historically, European milk prices have been higher than those in the UK. However, while we were waiting for regulatory approval last summer, prices increased in the UK, turning the European hierarchy of milk prices on its head.
But given that none of the fundamentals within the UK processing sector have changed, it is hard to see why this hierarchy will not be re-established.
Some members argue that the deal wasn't as good as it was laid out to be, but I disagree. The Arla Milk Link milk price is there or thereabouts where we were expecting it to be and we are only six months into a three-year transition period to achieve the same benefits as our farmer colleagues in Denmark, Sweden and Germany.
In addition, as owners of a European co-operative, we can prepare for the challenges facing the dairy industry post-2015. While the UK is well below quota and volumes will not increase dramatically in the near future, production across Europe could rise by as much as 2.5 billion litres.
Arla has defined a strategy to find a valuable home for members' milk, post-2015, in the growth markets outside of Europe. This long-term foresight is what is needed to be successful and get the best returns for members.
We are part of a leading co-operative and I am convinced that we have taken the correct route. Milk Link members voted overwhelmingly for the merger with Arla.
We saw the benefits that working together could bring and I believe that farmers will only get a fair return from the market in the long term if they are part of a professionally run and managed, vertically integrated, global dairy co-operative. Reported by This is 15 hours ago.