Arla has announced the launched of a direct milk supply contract to farmers which is fully compliant with the Dairy Industry Voluntary Code.
It has become the first company of its ilk to take up this option and follows up on a promise that it made to the industry in September 2012. The company stated that it would be addressing the various aspects of the code of practice while unveiling its new and comprehensive 'milk sourcing model'.
The Arla Direct agreement has been launched under the company's Lurpak, Anchor and Cravendale brand which is also looking to drive forward it campaign to secure an extra 500 million litres of milk across the UK.
Arla's new deal will see farmers looking to supply the company given a price of 30.02ppl for their milk. It will be available to all of those not currently involved with Arla from March 1st.
Under the terms of the agreement, which was made between the company, NFU, NFUS and Dairy UK, farmers are supported in ensuring they receive fairness and stability during contractual relations with milk buyers. Purchasers entering into an agreement with Arla will also be safeguarded with a long-term premium milk price.
Ash Amirahmadi, Arla's head of milk and member services said: "We believe this contract offers dairy farmers in England, Scotland and Wales, who aren't already supplying Arla, a long-term premium milk price and the security of supplying milk to a farmer owned cooperative that is investing in the future of the industry."
Arla has been in the midst of major upheaval in the opening part of the year with the company announcing ambitious expansion plans for the rest of 2013. The Danish firm is aiming to boost its global production for its most profitable offerings and this will be aided by the creation of a number of new facilities.
The company's board of directors had already given the go-ahead for these plans to come to fruition following proposals of a total investment of DKK 2 billion (£230.3 million).