The new agreement allows ASDA to source over 1.5bn liters of British milk from the dairy cooperative.
Arla said that the announcement ensures that this commitment continues until 2019 and provides Arla farmer owners with a sustainable home for their milk.
Peter Giørtz-Carlsen, executive vice president, Arla Foods UK, said, “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.”
Changes at Arla
Martin Evans, Chairman, ASDA Dairylink and Arla farmer, added, “Life on farm is extremely tough at the moment and this news is exactly what our farmers need.”
In addition to this new contract, Arla also said that ASDA is increasing its support by extending the ASDA DairyLink groups, where it has been working directly with Arla farmer owners to improve animal welfare, reducing carbon footprint and increasing farm efficiency.
The news comes after last week’s restructuring announcement, when Arla noted that it was trimming its monthly salaried staff by 500 jobs around Europe.
Also under the changes, Giørtz-Carlsen will take on a new role as head of Europe. Tomas Pietrangeli, who currently heads up the Danish market, will succeed Giørtz-Carlsen in the UK from March, 1 2016.