The key elements include:
Confirmation of the recent communication to its members of a significant increase in Arla’s standard litre price to 29.5ppl from 1 October, which will be delivered through:
A transparent and sustainable pricing model to be delivered in 2013:
October price increase
The milk sourcing model will allow Arla to share with members the benefits of retailer aligned contracts by pooling the retailer premiums which, in turn, will give better returns to all AFMP members whose price is not set through a formulaic model. This covers approximately 75% of the AFMP milk pool.
It is confirmed that with effect from 1 October, Arla’s standard litre price will be 29.5p for AFMP members in the non-aligned, Asda and Tesco seasonal milk pools. The TSDG and SDDG milk prices will continue to be formulated in accordance with the existing pricing models.
AFMP roadmap to deliver cooperative status
The board of MPL will begin the process, in Autumn 2012, of defining and agreeing the criteria for AFMP to achieve full membership of Arla Foods amba, the result of which will give much needed clarity to AFMP members on the approximate timescales and level of investment required, but also of the benefits.
Members will then have a choice to continue on the road to amba membership, in a way that is acceptable to members and Arla Foods amba, or take a direct supply contract with Arla in place of their existing contract.
Source: Arla Foods
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