Arla has announced its investment plans for 2014, aimed at the expansion of its dairies and to make its production chain more climate-friendly.
A total of 2.2 billion DKK (€293 million) has been assigned to the plan, with around a third of this allocated to investment in production targeted to the cooperative’s strategic growth markets – Russia, China, the Middle East and Africa.
The dairy giant is aiming to double the number of European products it exports outside of the EU by 2017.
"This year we are increasing our investments to dairy sites that contribute to our export out of Europe. Our sales on the growth markets outside the EU are growing at a fast pace, and we must prepare ourselves to meet the rapidly growing demand in years to come," said Arla vice-CEO Povl Krogsgaard.
Arla's largest investment planned for this year is a circa €71 million for the construction of a new lactose site near Nr. Vium in Denmark.
Significant investment is to be made at Arla’s Pronsfield dairy in Germany, which produces products such as UHT and milk powder for export to these growth markets.
Its UK sites will receive the most investment outside of Denmark. Around £43 million will be spent in the UK, including £9 million for a new cheese packaging facility at its Oswestry dairy.
Arla recently announced a milk price increase for the cooperative, resulting in an additional 0.74ppl for UK suppliers from February.
© 2014 - European Supermarket Magazine by Enda Dowling
