Arla Foods UK Becomes Minority Shareholder in Westbury Dairies
British dairy co-operatives First Milk and Milk Link have agreed terms for Arla Foods UK, the British arm of Scandinavian co-op Arla Foods, to become a shareholder in Westbury Dairies, the joint venture company that operates the UK’s most modern skimmed milk powder and bulk butter production facility located in Westbury, Wiltshire. First Milk and Milk Link have agreed to sell a minority share in the company to Arla.
Westbury Dairies will remain strategically important for both Milk Link and First Milk and it will continue to provide long term balancing requirements for both businesses, along with Arla in line with their strategic requirements. The addition of Arla to the joint venture will reduce the share of the costs borne by the original shareholders, Milk Link and First Milk, and provide a more economic balancing solution for all three businesses.
The enlarged joint venture secures the long-term future of Westbury Dairies. As such, it will continue to play an important role in providing the key balancing capacity necessary for the British dairy industry to meet its annual peaks in production, particularly in support of the fresh liquid milk market. Looking forward, all three parties will work to explore ways to develop further the potential of the Westbury site to complement its existing skimmed milk powder and bulk butter production capabilities.
“This joint venture with Milk Link and First Milk in Westbury Dairies will give us access to the high quality balancing facilities which we require, following the closure of our Northallerton creamery,” says Peter Lauritzen, chief executive of Arla Foods UK:
