Arla Foods has taken 100% control of Westbury Dairies upon the exit of its joint venture partner, First Milk, according to Food Manufacture.Co.UK.

 

England-based Westbury, said to have the country’s “most modern” production facility, was acquired by Arla in 2013.

 

“The Westbury site is now an integral part of that global network of Arla production sites and will benefit from being so, further helping the UK to play an even more significant role in our global strategy,” Peter Giørtz-Carlsen, executive vice president of Arla’s UK arm, told Just-Food.

 

The full control by Arla is being supported by the country’s farmers. Food Manufacture UK states that the National Farmers Union (NFU) had a positive reaction with Sian Davies, NFU chief diary advisor saying, “It is pleasing that Arla and First Milk have agreed a deal which suits their particular business models. As with any change in operating systems, we now need to ensure that this strategic move contributes to delivering a better return to farmers, as well as increase stability.”

 

The NFU, however, is still concerned over how the shift will translate into a better financial outcome for its farmers, reports Food Manufacture. Arla has responded that the company has launched its “Strategy 2020” initiative under which its plans to expand its business across six global markets and eight product categories.

 

The divestment by First Milk follows closely upon the company’s sale of its Glenfield subsidiary in December 2015 and the establishment of a new governance structure and board – all steps toward achieving its goal of restructuring the group around its core business of liquid milk and cheese.