AFMP announces that its roadmap discussions are on track
Moves to Code of Best Practice’s ‘purchaser discretion’ contract mechanism.
Arla Foods Milk Partnership confirms its discussions on defining the roadmap to full membership of Arla Foods amba are on track and its continued commitment to the dairy industry’s Voluntary Code of Best Practice on Contractual Relationships. As part of that, from 1 July 2013, AFMP will move to the ‘purchaser discretion’ contract mechanism of the Code.
When the Voluntary Code was agreed in September 2012, AFMP was categorised as ‘a non co-operative with groups of producers in transition to full cooperative membership’ in acknowledgement of the discussions taking place with Arla Foods amba to enable AFMP members to become full members of the global cooperative.
At this time the AFMP board committed to adopting the ‘purchaser discretion’ contract mechanism if, by 1 July 2013, the route to full cooperative membership was still in the process of being clarified.
Jonathan Ovens, chairman of AFMP, commented: “Our discussions on the roadmap are progressing well and the AFMP board, the Arla Foods amba board of directors and Arla’s management team, which are working together to define the roadmap, are happy with the direction and speed in which the discussions are going. I am confident of being able to present proposals to our members in the autumn.
“We have honoured the pledge we made to members last September in adopting the ‘purchaser discretion’ contract mechanism. We believe it demonstrates our confidence in reaching a successful conclusion to the roadmap discussions and that it is the right course of action for our farmer members and the industry as a whole.”
