Arla Foods Acquires Fonterra’s Stake, Plans World Record Plant

Arla Foods, a producer of milk and dairy products, has acquired a 25% share in New Zealand’s Fonterra after it disposed of its minority interest in a joint venture with Arla.

Arla has a licence giving it full rights to the Anchor brand for dairy products in the UK and for packet butter and aerosol cream in Europe.

An agreement has also been put in place for Arla to be supplied with Fonterra bulk butter, for the Anchor brand and its own label products in the UK.

Meanwhile, Arla says it is planning to build the world’s biggest dairy near London.

The Danish producer says the plant will handle about one billion litres of milk a year from 2012.

The plant will cost £70m to develop.