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26 September 2008
AFMP members are to be given greater flexibility in when they can serve notice, following an announcement from Arla Foods. that notice can now be served by the end of any month of the year, with the termination taking effect 12 months later.
Previously, notice for termination could only be given on 31 March or 30 September.
The decision was made at an AFMP board meeting yesterday (25 September), following the AFMP district chairmen’s conference last week where a review of the procedure for serving notice to terminate milk supply contracts with Arla Foods was requested.
Arla Foods was quick to act and Jonathan Ovens, AFMP Chairman, said: "I am pleased that the improved communications lines within AFMP and between AFMP and Arla Foods have enabled the board to respond this quickly to the concerns expressed by district chairmen, on behalf of their members."
Hanne Sondergaard, deputy CEO of Arla Foods and head of milk procurement said: "We have listened to producers and decided to give them flexibility to allow them to make commercial decisions based on ongoing market conditions."
By way of example, the contract of a member serving notice on 15 November 2008 would terminate on 30 November 2009.
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