Morrisons and Arla agree new milk deal

Picture by Chris Radburn/PA Wire
Picture by Chris Radburn/PA Wire
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Morrisons has agreed a new three-year contract starting in March 2018 that will mean its own-brand liquid milk is provided by Arla Foods.

The Bradford-based supermarket chain has issued a statement this afternoon in which it said it was “looking forward to working more closely with their farmers on a range of sustainability and animal welfare measures”.

Morrisons added that as part of the deal with Arla it “is also committing to further enhancing its regional and local milk offering”.

Steve Newbould, Morrisons’ head of trading - dairy, said: “We believe this agreement will be simpler for our business and will help to develop a sustainable dairy sector.”

An Arla spokesperson said: “This is very welcome news and we are delighted by Morrisons continued support for Arla and our farmer owners. We look forward to an exciting long-term relationship with Morrisons collaborating further on a number of initiatives that will further champion British dairy.”

Arthur Fearnall, Arla farmer owner and chairman of the Arla/Morrisons Farmer Group, added: “I believe that our farmer-owned principles played a crucial role in the outcome of this decision. I’m looking forward to representing our owners in what I believe will be a significant partnership going forward.”

Currently, Morrisons’ own brand liquid milk is supplied by both Arla and Muller Wiseman.

A spokesman for Müller said: “Morrisons remains an important and valued customer for whom we continue to provide a range of Müller branded and private label dairy products including Frijj flavoured milk and our range of yogurts and chilled desserts, to support their dairy category offering to consumers.”