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Action Aid Denmark vs. Arla Foods

Case overview

Date filed 8 July 2014
Current status Agreement
Issue Negative consequences of exporting subsidised milk
Summary of the case Arla is the 5th largest global dairy producer and a co-operatively owned by 13,500 farmers based in seven countries; Sweden, Denmark, the UK, Germany, Belgium, Luxemburg, and the Netherlands. Arla, along with other European dairy farmers, have received EU subsidies that have enabled them to export cheap milk powder, among other products, to international markets at low prices. According to the complaint, this undermines the milk industry in the Global South and has negative consequences for the livelihoods of locals.
The complaint alleges that Arla did not have adequate risk processes (due diligence) in place to be certain that the risks of adverse impacts of its activities on local stakeholders had been minimised in line with the OECD Guidelines.
Arla and ActionAid Denmark were already engaged in dialogue on this issue when the complaint was filed, but ActionAid felt that the dialogue was progressing too slowly.
Developments/Outcome The NCP communicated with both parties, but it was not necessary for the NCP to facilitate meetings or mediation as the parties were already engaging constructively on their own. The complaint served to speed up the pace of the dialogue between the parties, and just 4 months after the complaint was filed, the parties reached an agreement to ensure Arlas compliance with international human rights standards (including the OECD Guidelines and UN Guiding Principles) in its operations in developing countries. The agreement includes a commitment by Arla to implement a proactive human rights policy in its global operations, as well as report on the actual and potential adverse human rights impacts of the company´s activities.
Arla will also introduce due diligence procedures and engage in a more systematic identification, prevention and mitigation of actual and potential unintended consequences on local farmers' business prospects and rights that may be impacted by Arlas sales and operations.
Relevant OECD Guidelines
Case keywords

NCP Information

NCP name National Contact Point Denmark
NCP address Langelinie Allé 17 DK-2100 Copenhagen O, Denmark
NCP website
Other NCPs involved

Complainant

NGO

Company Information

Company responsible Arla Foods
Company address
Company website
Company in violation Arla Foods
Country of operations Denmark
Other companies involved

Timeline of developments

Date Actor Action Description Document
26 September 2014 Mellemfolkeligt Samvirke (Action Aid Denmark) joint statement Final agreement between ActionAid Denmark and Arla Foods. download pdf (107Kb)  
8 July 2014 Mellemfolkeligt Samvirke (Action Aid Denmark) file Complaint submitted by ActionAid Denmark to the Danish NCP. download pdf (187Kb)  

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