FDBusiness.com

Arla Foods to Invest DKr615 Million in Cheese Production

 Breaking News
  • Another Year of Progress For Nestlé Nestlé has reported a 2.1% increase in sales to SFr91.4 billion (€80.6 billion) for 2018 with organic growth of 3% and group RIG of 2.5%, which was at the high end of the food and beverage industry, helped by faster innovation and successful new product launches. 2018 organic growth was supported by stronger momentum in [...]...
  • Fast-growing Asia Maternal Nutrition Market to Boost Demand For Dairy ingredients and Formula Maternal nutrition is a hot new opportunity in emerging markets, according to the latest report from food and drink experts, Zenith Global. In many parts of Asia, the concept of optimal nutrition during the first 1,000 days of a baby’s life (from conception to two years old) is capturing the attention of mothers and their [...]...
  • Innovation in the Spotlight at UK’s Largest Packaging Show Packaging Innovations, Empack and Label&Print 2019 returns to Birmingham’s NEC later this month with its most innovative show to date. The show, which also includes Contract Pack, Ecopack and Industrial Pack, will showcase more product launches and innovation from across the industry than ever before as it welcomes over 300 suppliers. As always, Innovation is the [...]...
  • £100 Million Müller Programme to Transform UK Fresh Milk Business Müller Milk & Ingredients, Britain’s largest producer of branded and private label fresh and flavoured milk, cream, butter and ingredients, has launched a £100 milliion cost and margin improvement programme which aims to secure a vibrant and sustainable future for the business, to the benefit of consumers, customers, employees and farmers. Project Darwin includes a comprehensive [...]...
  • Coca-Cola European Partners Continues to Focus on Driving Profitable Revenue Growth Coca-Cola European Partners has reported its fifth consecutive quarter of revenue growth and announced plans to trade on the London Stock Exchange. Revenue grew by 4.0% to €11.5 billion and comparable operating profit grew by 7.0% to €1.6 billion in 2018. Earnings per share were €2.30, an increase of 8.5%. Coca-Cola Zero Sugar led growth in [...]...

Arla Foods to Invest DKr615 Million in Cheese Production

Arla Foods to Invest DKr615 Million in Cheese Production
April 13
09:31 2011

Arla Foods is to rationalise its yellow cheese production to counter international competition and declining milk volumes in Sweden. The Scandinavian dairy group’s restructuring plan aims at consolidating part of the yellow cheese production at its plants at Nr Vium and Taulov in Denmark, which will be significantly upgraded. The investment will have implications for Sweden’s Falkenberg Dairy and possibly the Danish Klovborg and Hjorring dairies.

As a result of the tough competition in international markets for yellow cheese, Arla’s board of directors has approved a DKr615m (Eur82m) investment in the dairies at Nr Vium and Taulov. The Swedish dairy at Falkenberg will be closed and it is expected that two Danish dairies at Klovborg and Hjorring will also eventually be shut. The measures are designed to secure Arla’s future production of a broad range of yellow cheeses at competitive prices.

“Market conditions are tough and if we don’t act now even more jobs will be lost within a few years,” explains Jais Valeur, executive vice president of Arla Foods. “Of course, it’s sad for the many colleagues who may lose their jobs but we hope that we’ll be able to maintain other jobs at Arla’s dairies going forward. An added benefit is that we’ll be able to use Swedish milk more efficiently – for the benefit of both milk producers and consumers.”

Milk volumes have been declining in Sweden since 2003 and to avoid empty plants, Arla has to react to the over capacity problem at its Swedish dairies, which has contributed to increased production costs. To keep costs under control and maximise the milk price paid to the co-operative owners, Falkenberg dairy is being closed.

Falkenberg’s cheese production will be transferred to the Danish dairy in Nr Vium, which will benefit from an expansion programme amounting to DKr125m over the next twelve months.

Over a three period, Arla will expand the dairy in Taulov. With the planned investment, the Taulov dairy will reach production of up to 45,000 tonnes of cheese per year. This will increase the capacity at the dairy by more than 60%. At the same time the capacity at Nr Vium will go up to 59,000 tonnes, which is equivalent to a 34% increase, allowing Arla to produce cheese at lower costs and improving its international competitiveness.

”These changes will create a sound future for Arla’s yellow cheese production,” says Jais Valeur. “Around 25% of Arla’s milk is currently used for cheese-making so this is an important business area for us which we will have to develop – and be competitive in.”

About Author

colin

colin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements