NFU dairy board chairman Michael Oakes said: "The NFU has long advocated that farmers need to be demand led and this should be a two way process between milk processor and farmer, to enable them to benefit from market opportunities.
"It is positive that Arla want to grow their business alongside their members, but I question the openness of the invitation and lack of communication about the scale of the market opportunity. Farmers have just been through a deep, sustained market downturn and are rightly cautious.
"At NFU Conference last week I urged milk buyers to work closely with their supplying farmers to better match supply to demand and for both to be far more responsible in giving the right signals. Milk buyers by providing clear information as to future milk demand and the tools by which to manage demand, and farmers through accurate forecasting and discussing any expansion, or indeed reduction plans with their milk buyer. Gone are the days of continuing to produce blindly with the expectation that milk buyers will process and sell every drop.
"Going forwards we need farmers and milk buyers to work together in taking responsibility for volumes, and better matching supply to demand."