Arla has signed a new four-year dairy contract with ASDA in a deal which is described as the UK's 'biggest private label dairy contract'.
It means Arla will 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 until 2028.
During this period it is estimated Arla farmer owners will supply 'over three billion litres of milk' across the product range.
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."
Paul Gillow, vice president 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."
