The merger between dairy associations Arla and Gefleortens has been approved by the Swedish Competition Authority, which ruled that the deal would not hamper competition in Sweden's dairy market.
Now, all dairy farmers in Gefleortens will have the opportunity to become members of the Arla cooperative, which is jointly owned by 11,200 dairy farmers in Sweden and Northern Europe.
"Of course, I'm both happy and relieved about the Competition Authority's message," said Thomas Lundgren, chairman of Gefleortens.
"Our goal has always been to ensure stable and long term conditions for the milk production of members while ensuring that the brand and dairy continue to develop. I hope that even our customers and consumers see that this is the best thing that could happen to us at the moment."
Developing Market
Arla says that it will now begin work to integrate Gefleortens into its cooperative. Arla intends to take over the associations brand, as well as the ownership and operation of its dairy in Gävle.
"We at Arla constantly work to develop the dairy market, wherever we are," said Åke Hantoft, chairman of Arla Foods.
"We also see a need for more Swedish milk raw materials in the coming years of both Arla Milk and Arla Organic Milk. Here, the merger with Gefleortens will be an important puzzle in this ambition."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
