Arla-Milk Link merger?
The Milk Marketing Board, established in 1933 as a monopoly on the collection and sale of milk, was dismantled in 1994 on a wave of Thatcherite market ideology. It was split into three farmer-owned co-operatives, of which only Milk Link remains today and there are reports that Arla is said to be aiming for a merger.
Clive Black, analyst at Shore Capital and a former dairy man, said the combination would create efficiencies but added that the deregulation of the milk industry has been a disaster for farmers, who should have gone for the alternative of three regional co-operatives, which would have given more competition and higher prices.
Many farmers and processors are barely breaking even
Deregulation and aggressive pricing by supermarkets have eroded profitability in the sector, leaving many farmers and processors barely breaking even. Consolidation among processors began this year, when Germany’s Müller bought Scotland-based Robert Wiseman Dairies.
Summarised from: http://nicosiamoneynews.com/2012/05/21/milk-link-deal-set-to-mark-end-of-era/