Arla Foods invests US$644.1 million in a 2020 growth ambition

UK – Arla Foods board of directors have approved a US$644.1 million investment driven toward investing in new ventures, expanding and improving production capacity as well as innovative technology.

Arla, as a cooperative philosophy, has developed a strategy where all of their earnings go back to the farmer since the company is farmer-owned therefore the investment is set to benefit 11,200 farmers.

The investment will apply in Arla’s regions of operations focusing on the need to meet the growing demand for dairy, venturing into healthy and natural products that march consumer lifestyles, investing in whey production and sustainable food production that considers the future of the planet.

“Arla has a history of good investments for sustained growth.

The board of directors has decided to increase our investments with this plan, because we have identified new projects and investments with short and long term potential for significant return.

The business growth these investments will create for our company will generate growth opportunities for our farmer owners.

We see these investments as essential to the future of our business,” said Åke Hantoft, Chairman of Arla Foods.

According to Arla, two-thirds of the investment will focus on increasing Arla’s European production capacity, with US$325.5 million being invested in Denmark, US$100.4 million in the UK, US$95.4million in Sweden, US$79.6 million in Germany and US$42.8 million for production in other countries.

Arla was also planning on investing in various projects with 50% of the investment outside Europe targeting an increase in sales in the Middle East and North Africa, China and Southeast Asia, Sub-Saharan Africa and the United States.

In a statement, Peder Tuborgh, CEO, Arla Foods said that the investment was a growth plan aimed at expanding Arla’s position in key dairy categories and geographic markets where it is already a key player.

Arla has got an ambition to create a strong foundation for their farmer owners and growth of the dairy business.

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