One of Sweden’s largest dairy farms is on the brink of bankruptcy following the owner’s expulsion from Arla. ATL summarizes the background in an article.
On December seventh, the district court will review a petition to declare bankruptcy for a dairy farm on Gotland, which houses around 1,000 animals. This situation arises after the owner’s exclusion from Arla, thereby halting the sale of their milk.
ATL references a letter in which Arla expresses the intention to exclude the farmer due to his persistent failure to enhance the handling of sick animals or maintain adequate cleanliness around them. Conversely, the owner contends that the exclusion results from a personal conflict with an inspector who visited the farm. Although the owner improved conditions on the farm during the summer, Arla ultimately chose to exclude the farmer. Given the farm’s inability to sell its milk, it lacks income. Consequently, the bank has initiated bankruptcy proceedings after attempting to find viable solutions.
Arla declines to comment on individual members. Nonetheless, Lisa Ehde, a member and agricultural manager of the cooperative, informs ATL that exclusions are exceedingly rare. Typically, such actions occur when a farm fails to meet Arla’s quality standards for its members, despite repeated efforts to rectify the situation.
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