Arla Foods Limited has announced its acquisition of Yeo Valley Dairies Limited, a subsidiary of the Yeo Valley Group Limited. The transaction will give Arla the rights to use the Yeo Valley brand in milk, butter, spreads and cheese under an intellectual property licence with Yeo Valley.

The Yeo Valley yogurt, ice cream, cream and desserts business will continue to be run independently through Yeo Valley Group, which remains under the ownership of the Mead family.

Just 4% of milk sold in the UK fresh milk market is organic, compared to 10% in Germany, 16% in Sweden and 29% in Denmark.

Completion of the transaction will take place following merger approval by the UK Competition and Markets Authority.

Board appointments

Meanwhile Chester farmer Arthur Fearnall was appointed to the Arla Foods amba board during an extraordinary meeting of the UK Area Forum, which comprises 94 British elected representatives.

He will join Johnnie Russell as the two UK Board of Directors who represent the interests of UK members on the 15-strong farmer board. The role of Board of Director became vacant in December 2017 following the departure of Jonathan Ovens.