Co-op offers premium for GM-free milk
European dairy co-op Arla wants its farmer suppliers to use more GM-free feed.
New design elements on Arla products will promote the products as coming from a co-op delivering natural and nutritious milk. And it will push the farmer ownership message.
“We want to make it clear Arla is the farmers’ company,” says Arla chief executive Peder Tuborgh. “This means all Arla’s earnings go back to its farmer owners and the owners are active in creating value for our consumers.”
Consumers are increasingly interested in the origin of products, says Åke Hantoft, chairman of Arla and one of the company’s 12,747 farmer owners. They want to know how it’s produced, how the cows and environment are treated and who they support when buying the product.
“Arla is the farmers. It’s we, the farmer owners, who every day ensure the product is made with care. However, many consumers don’t know this about Arla. We want to make this clear, because we are proud of our cooperative and the milk we provide.”
Money is tight for dairy farmers in Europe due to the low milk prices in the global market. Hence the co-op‘s message: “When you buy an Arla product you support dairy farmers, not a group of shareholders with little or no association to dairy farming,” says Hantoft. “Our main focus is to maintain a long-term sustainable milk supply, which is high quality and includes animal welfare.”
Arla farmers’ ownership of the co-op, and the earnings they get, give them a natural motivation to take care and invest in every step of the milk supply chain, the co-op says.
With the product pack messaging will come promotion via social media, websites, events, etc.
Arla is owned by 12,747 farmer owners in the UK, Sweden, Denmark, Germany, the Netherlands, Belgium, and Luxembourg. Brands include Lurpak and Castello.
