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Arla Foods to Close Danish Dairy

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Arla Foods to Close Danish Dairy

Arla Foods to Close Danish Dairy
July 06
10:42 2017

After thorough analysis, the board of Arla Foods has taken the decision to close the Lillebælt Dairy in Denmark which produces white mould cheese under the Castello® trademark. In the future these cheeses will be produced at Troldhede Dairy, also in Denmark, where there are better opportunities to make long-term investments in quality and efficiency.

“Having conducted a thorough analysis of Lillebælt Dairy, this has shown that it is no longer profitable to continue production. It will require substantial investment to secure long term production at this site. Similarly, by combining the production of white mould cheese at Troldhede Dairy, our costs will be lowered, which will benefit our farmer owners,” says Group Vice President at Arla, Lars Dalsgaard, who has global responsibility for Arla’s cheese production.

The closure of the dairy is expected to be completed in the beginning of 2019. Arla Foods will offer the affected colleagues jobs at its nearby dairies such as Korsvej and Taulov, which have benefitted from investment of more than DKr157 million in expansions and production developments in recent years.

Owned by 12,000 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxemburg and the Netherlands, Arla Foods is one of the strongest players in the international dairy arena, with a wide range of dairy products and well-known brands like Arla®, Lurpak® and Castello®. Arla Foods is also the world’s largest manufacturer of organic dairy products.

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