The Partnership's history dates back to February 1993 when the original Northern Milk Partnership (NMP) was founded in preparation for the deregulation of the Milk Marketing Board in 1994.
The arrival of an open market after more than 60 years was welcomed by the Partnership whose vision was for producers to work together directly, efficiently and in close collaboration with a leading dairy processor. |
Northern Milk Partnership
The months leading up to deregulation represented a long recruitment campaign for NMP. By November 1994 there were over 1,100 contracted milk producers supplying Northern Foods with a combined annual production in excess of 700 million litres.
A year on, NMP producers' milk supply to Northern Foods grew to 45 per cent and a 10-strong farm liaison team was employed to assist members with professional advice to improve their farming. |
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The number of members of the Partnership grew steadily in 1997, and combined with increased production by many, waiting lists had to be introduced. |
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Express Milk Partnership
The demerger of Northern Foods' Dairy Operations in March 1998 marked the change of name to Express Milk Partnership. As dedicated suppliers, accounting for over half of Express Dairies milk requirements, Partnership members warmly welcomed the new business development. |
The next major milestone in the Partnership's history was in 2001. This was a particularly challenging year for both the Partnership and farmers nationwide as the foot and mouth crisis hit the UK. However, the Partnership stood the test of time and continued to provide strong support services to its members and fostered even stronger relationships with the company.
Richard Smith stood down as chairman in 2001 and was appointed life president. Jonathan Ovens, vice chairman for the previous seven years became chairman of the Partnership and continues to lead the Partnership to the present day.
Another significant change in October 2002 was the formation of Express Milk Partnership Investment, the shareholder arm of Express Milk Partnership. More than 90 per cent of members signed a new contract, which allowed a capital raising structure to provide investment funds for EMPI to invest in the future. |
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Arla Foods Milk Partnership
The following two years marked considerable change for both the Partnership and the company as the proposed merger with Arla Foods was announced. Discussions on combining the existing Express and Arla direct supply farmer bases followed and meetings of representatives from all groups were held. |
The enlarged company, named Arla Foods UK plc, remained committed to retaining all existing dairy farmer suppliers and further meetings continued to discuss the practical methods of combining both farmer supply groups. |
In April 2004 1,400 dairy farmers were brought together to supply 1.2 billion litres of milk a year to Arla Foods UK plc and were named Arla Foods Milk Partnership. Subsequent dealings also made Milk Partnership Limited, the former EMPI, Arla Foods third largest shareholder with more than a five per cent shareholding in the company, drawing the relationship with the company even closer. |
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In 2005 the Partnership's supply to the company reached 70 per cent and the Partnership continued to grow following targeted recruitment throughout the year becoming the largest direct supply group in the UK.
The original objective of the Partnership, to guarantee a market for every litre of milk produced by members at a premium price, has continued to serve members well in addition to the extra security of the Partnership's seven-year rolling contract and share buying structure. The Partnership now supplies 80 per cent of Arla's raw milk requirement.
Arla Foods UK plc was delisted from the London Stock Exchange on 5 April 2007 and was wholly owned by Arla Foods amba, Europe's largest dairy company.
On 15 May 2008, it was announced that Milk Partnership Limited (MPL), Arla Foods Milk Partnership's investment arm, and Arla Foods amba were uniting in a joint venture that saw MPL become part owners of Arla Foods UK plc. The joint venture holds a seven per cent share in Arla Foods UK plc, equally split between MPL and Arla Foods amba.
The joint venture aims to strengthen the relationship between MPL and Arla Foods amba and will give MPL farmers a greater insight into its processing partner's business. It will also give MPL farmers the opportunity to join a family of farmer shareholders, input into Arla UK's strategy and share in the success of Arla Foods UK plc. |