DAIRY FARMERS who supply Arla Foods UK should have nothing to fear from the proposed merger of its Danish parent company, which owns 51% of the business, with Dutch co-op processor Campina.

Jonathan Ovens, chairman of Arla Foods Milk Partnership, which supplies about half of Arla Foods UK‘s milk, said: “We see it as positive move for our members.”

He said if the deal was approved by competition authorities any new opportunities would be looked at.

“Maybe it would be possible to sell Cravendale on the Continent, for example.”

The merger will create Campina Arla, the world‘s largest farmer-owned dairy company with annual revenues of E10bn (£7bn) and 28,000 employees.