In a speech to Campina’s AGM on Wednesday, Arla Foods' Chairman, Knud Erik Jensen, stated that a final merger decision cannot be taken until a firm proposal for the new company’s capital model and the issue of members particification units is in place in both Sweden and Denmark.

“At Arla Foods we’re used to discussing important matters with our co-operative members and we feel that this discussion is necessary now,” he said. “The process, in fact, lies at the heart of co-operative democracy.”

Knud Erik Jensen emphasised that Arla Foods’ development over many years is proof that a well-functioning co-operative democracy and an efficient, business oriented organisation can go hand in hand.

“While we should be fully committed to the merger process, we should also accept that achieving an optimal solution that is backed by our co-operative members will take time,” said Knud Erik Jensen, adding that finding the right solution has taken longer than expected.