Arla Foods UK signs new four-year contract with Asda; the new contract, which runs for four years until 2027, will see Arla continue to be Asda's strategic dairy partner supplying its private-label milk, cream, cheese and butter

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July 21, 2023 (press release) –

Arla, the UK’s largest dairy cooperative, has signed a new, four-year contract with ASDA, one of Britain’s leading supermarkets.

The new contract which runs for four years until 2027, will see Arla continue to be ASDA’s strategic dairy partner supplying their private label milk, cream, cheese, and butter. The agreement gives stability and security for Arla owner milk over the next four years. During this period Arla farmer owners will supply over three billion litres of milk utilised across the product range – a deal which is the UK’s largest private label dairy contract.

Jonathan Dixon, Senior Vice President of Sales at Arla Foods UK said: “Arla and ASDA have had a long partnership of working together to deliver healthy and nutritious dairy products to UK consumers. While this new, four-year agreement is a continuation of that promise, it also demonstrates the commitment from ASDA to support our farmer owners on their sustainability journey.”

Arthur Fearnall, UK Board of Directors at Arla Foods said: “This new contract will take the Arla-Asda relationship beyond 20 years working and is one that we are very proud of. We thank Asda for their commitment and look forward to working together on key initiatives, such as sustainability and animal welfare.”

Commenting the new contract Paul Gillow, VP for Fresh Food at Asda said: “In a period of ongoing instability in the agriculture sector we are delighted to continue to partner with Arla for the long term. Sustainability plays a key role within our strategy with a target to reach net carbon net zero by 2040 so we are excited to work together with Arla farmer owners to reduce carbon impact and raise farm welfare standards.”

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