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Back in the 1880’s, dairy farmers in Denmark and Sweden formed small cooperatives to invest in common dairy production facilities. The first co-operative dairy was established at Stora Arla Gaard in Västmanland under the name of Arla Mejeriforëning [1]. By doing this the farmers made efficient use of their milk, which resulted in higher quality products. The earnings they made from their milk were equally split between the dairy farmers.

The history of Arla Foods in Sweden

Arla’s history began when Landtmännens Mjölkförsäljningsförening was formed. The name was later changed to Mjölkcentralen (MC). Year by year a substantial number of larger and smaller dairies was merging with Mjölkcentralen and in connection with a number of mergers in the early 1970’s, it was proposed that the company should have a new, common name[2].

  • 1974: Registration of the name Mjölkcentralen Arla[3]
  • 1975: Mjölkcentralen changes name to Arla and acquires its new logo: the Arla Cow[4]

The history of Arla Foods in Denmark

The first co-operative in Denmark was established in Hjedding in 1882. In the following decades, the number of co-operative dairies rose dramatically[4].

  • 1945: There were 1,650 co-operative dairies in Denmark
  • 1970: Mejeriselskabet Danmark (MD) is established on October 1 by four dairy companies and three individual dairies
  • 1970s and 1980s: Various dairies and dairy companies across Denmark join Mejeriselskabet Denmark through mergers or acquisitions
  • 1978/79: The volume of milk exceeds 1 billion kg for the first time, and Arla accounts for 1/3 of the total Danish market in 1977
  • 1988: The company changes name to the more international MD Foods
  • 1989: MD Foods International A/S is formed for the purpose of acquiring dairies abroad
  • 1992: MD Foods and Denmark’s second largest dairy company, Kløver Mælk, sign a financially binding cooperation agreement. MD Foods International makes further acquisitions in the UK
  • 1999: MD Foods and Kløver Mælk merge to become MD Foods, gaining 90% of the Danish milk production[4]

Arla Foods as it is known today

Over the years, the cooperative idea proved increasingly attractive. Small farmer cooperatives merged and became stronger. They expanded from local to regional to national cooperatives. In 2000, the largest Danish dairy cooperative merged with its Swedish counterpart and Arla Foods, the first cross-border dairy cooperative, was formed[5]. The cooperative idea also flourished in other countries and through recent mergers cooperative owners in the UK, the Netherlands, Germany, Belgium and Luxembourg have joined Arla Foods.

  • 2000: Arla Foods amba is formed on April 17 [6]
  • 2001: On June 27, Arla Foods publishes a new five-year strategy plan which means the closure of 17 dairies in Denmark and Sweden and the redundancies of approx. 1,000 people [7]
  • 2002: The cooperative members in Hellevad Omegns Andelsmejeri agree (63 votes for and 50 against) to a merger with Arla Foods with effect from 30 September 2002 [8]
  • 2005: The planned merger between Arla Foods and the Dutch Campina break down in April and Arla’s CEO Åke Modig leaves the company. Peder Tuborgh is appointed CEO in June [9]
  • 2005: On August 26, Arla Foods and the Chinese dairy company, China Mengniu Dairy Company, begin a partnership for the production of powdered milk in the Chinese market [10]
  • 2006: On January 27, Arla Foods buys the specialty dairy, White Clover Dairy in Wisconsin, USA. The purchase of Wisconsin-based White Clover Dairy, a company with 170 employees, on 26 January 2006, provided direct access to the U.S. market (White Clover had produced Arla products under license since 1998)[11].
  • 2008: Arla Foods acquires Finnish Arla Ingman Oy AB which becomes a fully owned subsidiary [12]
  • 2009: Hirtshals Co-operative Dairy joins Arla [13]
  • 2009: Authorities approve: Arla Foods to buy Fresh Nijkerk from FrieslandCampina [14]
  • 2011: Authorities approve: Arla Foods merger with German dairy company Hansa Milch [15]
  • 2012: Arla Foods merges with Milch-Union Hocheifel in Germany and Milk Link in Great Britain [16]
  • 2013: Arla opens the world's largest fresh milk plant in Aylesbury, UK[17].

References

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  1. ^ "Mejerier" (PDF). www.lemvighistorie.dk. 22 March 2012. Retrieved 17 July 2017.
  2. ^ "Uppsalas mejerihistoria". www.uppsalaindustriminnesforening.se. Uppsala Industriminnesförening. 2010. Retrieved 17 July 2017.
  3. ^ "Uppsalas mejerihistoria". www.uppsalaindustriminnesforening.se. Uppsala Industriminnesförening. 2010. Retrieved 17 July 2017.
  4. ^ a b c Christensen, Jens (8 October 2012). "Fra andelsmejerier til Arla Foods 1882-2012". www.danmarkshistorien.dk. Aarhus University, Institut for Kultur og Samfund. Retrieved 17 July 2017.
  5. ^ Burn-Callander, Rebecca (19 February 2014). "Arla Foods, Europe's largest dairy, churns out record year". www.telegraph.co.uk. Telegraph. Retrieved 17 July 2017.
  6. ^ de Woul, Jan. "Tabell – LRFs organisationsmedlemmar". www.lrfhistoria.se. LRFs Historia. Retrieved 17 July 2017.
  7. ^ "Arla lukker 17 mejerier". www.business.dk. Berlingske Business. 27 June 2001. Retrieved 17 July 2017.
  8. ^ Olsen, Jesper (25 March 2002). "Hellevad siger ja til Arla Foods". www.borsen.dk. Borsen. Retrieved 17 July 2017.
  9. ^ "New director for Arla". www.jyllandsposten.dk. Jyllands-Posten. 15 June 2005. Retrieved 17 July 2017.
  10. ^ Astley, Mark (15 June 2012). "Arla signs agreement with Mengniu to boost China exports". www.dairyreporter.com. DairyReporter.com. Retrieved 17 July 2017.
  11. ^ "US: Arla Foods acquires White Clover Dairy". www.justfood.com. Just-Food. 27 January 2006. Retrieved 17 July 2017.
  12. ^ "Ingman Group - The history of the company in brief". www.ingman.com. Ingman Group. Retrieved 17 July 2017.
  13. ^ "Danish dairy group Arla Foods takes over dairy cooperative Hirtshals Andelsmejeri". www.m2.com. M2. Retrieved 17 July 2017.
  14. ^ "Arla Foods to buy Nijkerk Dairy from FrieslandCampina". www.frieslandcampina.com. FrieslandCampina. 4 May 2009. Retrieved 17 July 2017.
  15. ^ "Hansa-Milch bliver en del af Arla". www.fodevarefokus.dk. Fodevare Fokus. 3 March 2011. Retrieved 17 July 2017.>
  16. ^ "Bech-Bruun advises Milch-Union Hocheifel on merger with Arla". www.bechbruun.com. Bech-Bruun. 30 May 2012. Retrieved 17 July 2017.
  17. ^ Taverner, Charlie (29 May 2014). "Arla opens world's biggest milk plant at Aylesbury". www.fwi.co.uk. Farmers Weekly. Retrieved 17 July 2017.
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