FDBusiness.com

Arla Foods Restructures to Cut Costs

 Breaking News
  • Firmenich Launches Advanced Natural Flavour Solutions For High Protein Beverages Firmenich, the world’s largest privately-owned company in the flavour and fragrance industry, has officially launched its Protein Shield Flavors, a new line of natural flavour solutions aimed to help developers address the challenges they face when creating beverage products with high protein content. “These natural solutions confirm Firmenich’s deep commitment to advancing health and wellness,” says Chris [...]...
  • JDE Invests Heavily in Kenco Coffee Company Rebrand Jacobs Douwe Egberts (JDE) Professional has unveiled a fresh, new brand positioning for Kenco The Coffee Company, complete with a bold new logo and pack design. The new design brings to life the heritage, passion and expertise behind the well-loved brand, helping to further boost value and volume growth across the sector. The Kenco brand is [...]...
  • ABP Food Group in £22 Million Renewable Energy Project A £22 million investment by ABP Food Group’s renewable division in a green energy plant will produce enough sustainable energy to power the equivalent of 12,000 homes. ABP’s renewables division, Olleco, has just opened the new 15 MW Anaerobic Digestion facility in Aylesbury, Buckinghamshire. The ABP Food Group facility is located adjacent to the Arla dairy, [...]...
  • How Steel Packaging Contributes to Saving Food A new film from APEAL, the Association of European Producers of Steel for Packaging, has been launched to highlight the unique preservation qualities of steel packaging. Having recently welcomed the European Parliament’s (EP) initiative report – Resource efficiency: reducing food waste, improving food safety – APEAL is increasing its own efforts to drive improvements in managing food waste [...]...
  • New Website Brings Easy Access to Food Processing Equipment Interfood Technology has launched a new website to provide an easy-to-use resource for sourcing the latest in food technology and processing equipment. The site has been introduced to coincide with the company’s relocation to new, larger premises and marks another significant investment in Interfood’s development. The main reasons behind the complete revamp from the company’s previous [...]...

Arla Foods Restructures to Cut Costs

Arla Foods Restructures to Cut Costs
May 16
11:18 2012

Arla Foods has announced measures, including the shedding of 250 jobs, aimed at reducing its annual costs by DKr500 million (Eur67 million) in order to remain internationally competitive. The international dairy group is being organised in a more efficient way to ensure a competitive milk price to co-operative owners and to prepare the organisation for further growth.

The changes aim to reduce the complexity in the organisation, ensuring clear roles and responsibilities and leveraging synergies in scale. Consequently, Arla will discontinue approximately 250 administrative positions globally before the end of 2012, and approximately 150 administrative positions will be restructured within the organisation. Simultaneously, Arla will reduce spending on market research and analysis activities as well as procurement costs on packaging and other materials. In total, the changes are expected to reduce Arla’s annual cost by DKr500 million going forward.

Peder Tuborgh, chief executive of Arla Foods.

“Our turnover is growing, and that growth will continue. We have a responsibility towards all of our co-operative owners and other dairy farmers, who invest their milk and their money in Arla, to make sure that our turnover grows significantly faster than our cost. Our international competitors are able to turn ideas into action quicker than before and, therefore, Arla needs a more simple and structured way of working,” explains Peder Tuborgh, chief executive of Arla Foods.

Arla’s ambition is to continuously play a leading role in the current consolidation of the European dairy industry. A leading position requires that Arla is able to attract and retain raw milk in sufficient volumes, and a prerequisite for this is to deliver a competitive milk price to its co-operative owners.

“It’s a long time since Arla has had the opportunity to really exploit the synergies that always arise when two large companies, each with their integrated production and administration, join forces. Even the most recent mergers with the Swedish Milko and the German Hansa have not been large enough to trigger radical efficiency measures throughout the company. Therefore, this project aims to ensure that Arla stays competitive by reducing costs and complexity of our business model – and thereby prepare ourselves for further growth,” says Peder Tuborgh.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 19, 2017PMA Fresh Summit 2017
  • October 21, 2017Food & Nutrition Conference & Expo 2017
  • October 22, 2017Serbotel
  • October 22, 2017Natexpo
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements