Arla either open the books or face the Lawyers

The Danish National Association of Dairy Farmers (LDM) have launched a legal challenge against Arla alleging its farmgate milk pricing policy is out of line with Co-op rules. 

Arla now have to deal with the Lawyer representing the Danish Dairy Producers Association LDM who have given the Co-op four weeks to disclose information it has requested for over 12 months if Arla wishes to avoid a legal battle. 

The crux of the grievance appears to be the claim that none of the elected representatives have access to the detail behind Arla’s various milk pricing decisions and have declined to provide the details despite numerous requests.

LDM and its Lawyer question whether National bonuses and additional payments for grazing your cows outside for a minimum number of days, feeding GM free diets etc are in accordance with Arla’s Articles of Association or the Co-op’s rules. In addition, LDM want to know where this bonus money originates from. In other words, LDM’s view is one price for all members. 

LDM have never shied away from controversy or a challenge as Arla experienced when its members declined to sign the new Global Milk Supply Agreement. 

Its yet another challenge for Arla to come alongside the post Brexit uncertainty, including the suggestions from government that Lurpak could be repackaged and produced in the UK. – OMG!

Taking everything into account, the Arla UK farmgate pricing model could be in for a rough ride. 

LDM is an independent organisation representing circa 1400 (60%) Danish Dairy farmers from a Danish total of 2,400.