Aldi and Arla: A Deep-Rooted Partnership
Arla Foods, a farmer-owned cooperative, has a long-standing relationship with Aldi in the UK. In 2018, Arla became Aldi's main liquid milk supplier for England and Wales, taking over a significant portion of the contract. This partnership has continued to develop, with Aldi investing in Arla's sustainability programs to support British dairy farmers.
The Aldi Dairy Farm Partnership (ADFP)
The Aldi Dairy Farm Partnership, established in 2018, is a key element of Aldi's dairy sourcing strategy. The program works with British dairy farmers, many of whom are part of the Arla network, to ensure high welfare standards and promote sustainability. Aldi recently committed an additional £30 million to extend this partnership until mid-2027, covering 100% of Arla's fresh milk supply for the retailer. This investment supports Arla's initiatives to help farmers reduce on-farm emissions and improve sustainable practices.
Who Supplies Aldi Milk by Region?
Aldi uses a localized supply chain to provide fresh British milk across the UK. While Arla is a major partner, particularly in England and Wales, other suppliers operate in different regions.
Milk Supply Breakdown by Region:
- England and Wales: Arla Foods is the primary supplier for own-label liquid milk.
- Scotland: Müller is set to take over the supply for Aldi stores in Scotland from Graham's the Family Dairy in early 2025.
- South West (Cornwall): Trewithen, a Cornish dairy, continues to supply some Aldi stores in this area.
Aldi's Sourcing Strategy and the Price Advantage
Aldi's competitive pricing on own-label milk is a result of operational efficiencies, a streamlined product range, and a focus on store brands. By relying on own-label products, Aldi can reduce intermediary costs in the supply chain.
Comparison Table: Aldi Milk vs. Branded Milk
| Feature | Aldi Own-Label Milk | Branded Milk (e.g., Arla) |
|---|---|---|
| Supplier | Primarily Arla in England/Wales, others regionally | Arla, Müller, and other major dairy companies |
| Price | Generally significantly lower due to reduced overheads | Higher, reflecting marketing, branding, and distribution costs |
| Labeling | Aldi brand names (e.g., Friendly Farms) | Prominently features the brand name |
| Source | 100% British farms, often Arla-affiliated | UK farms, with Arla being a farmer-owned cooperative |
| Sustainability | Focus on sustainability via partnerships like ADFP | Varies by brand, though Arla has its own sustainability initiatives |
| Certification | Often includes Red Tractor and other quality marks | May feature Red Tractor, Arla's own marks, and others |
The Quality and Cost Equation
Aldi's own-label milk is often sourced from the same dairies that supply well-known brands. The lower price is primarily due to Aldi's efficient business model and reduced branding and marketing expenses. This means consumers can often purchase a similar product at a lower cost. Aldi's commitment to British sourcing and quality, supported by accreditations like Red Tractor, ensures the milk meets required standards.
Conclusion
In summary, while Arla is a major supplier of own-label milk for Aldi in England and Wales, Aldi utilizes a network of British dairy suppliers across the UK. The Aldi Dairy Farm Partnership, in collaboration with Arla, underscores Aldi's commitment to British farming and sustainability. Regional variations in suppliers exist, with companies like Müller and Trewithen serving specific areas. The lower price of Aldi milk is largely a result of the retailer's operational efficiency, not a reflection of lower quality.
For more information on the dairy market, a helpful resource is The Grocer, which often reports on supermarket supply chain dynamics: https://www.thegrocer.co.uk/.
