Gist Holytown Lanarkshire - Arla

Arla will replace Müller as Aldi’s main liquid milk supplier later this year after signing a new supply agreement with the dairy co-op.

The discounters’ current agreement splits main supply between the two dairy giants, but Arla will take over the lion’s share of Müller’s liquid milk contract with Aldi for England and Wales from October 2018, strengthening its relationship with the retailer.

Graham’s the Family Dairy will maintain its supply contract for Aldi stores in Scotland, while Cornish dairy Trewithen will still supply number of Aldi stores in the south west.

“We have a long-standing relationship with Arla and are pleased to reach an agreement for them to become our main liquid milk supplier in England and Wales,” said Julie Ashfield, managing director of buying at Aldi.

“This new agreement will enable us to work more closely with British dairy farmers to further enhance sustainability and animal welfare standards.”

Aldi joins Asda in making Arla its main liquid milk supplier, while the dairy co-op also has a deal in place to exclusively supply own-label milk into Morrisons from March.

Müller will continue to supply Aldi with other dairy products including cream and yoghurts, an Aldi spokesman confirmed, while it would also continue to supply fresh milk to the discounter in two remaining regions.