Arla Foods has agreed to sell its 49% stake in Walhorn AG to French dairy giant, Lactalis, which currently owns 51% in the Belgian joint venture, effective June 30, 2015.
Arla, which is owned by 13,500 dairy farmers across the UK, Germany, Denmark, Sweden, the Netherlands, Belgium, and Luxembourg, acquired its stake in Walhorn in August 2014 when it merged with Eupener Genossenschaffsmolkerei Walhorn (EGM Walhorn).
The bulk of the 550 million kilograms of milk produced by the 800 farmer-owners of EGM Walhorn is supplied to the joint venture, and will continue to do so for the next year, to the end of June 2016. Once the year-long extension of the agreement is expired, Arla Foods will assume the responsibility of delivering 100 million kilograms of milk per year to Walhorn AG, which by then will be under full ownership of Lactalis, and the remaining 450 million kilograms will be delivered to its processing plant in Pronsfeld, Germany.
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