Arla launches new Ghana business

GHANA – Leading dairy concern Arla has expanded its market in sub-Saharan Africa business region by establishing a new sales and packaging facility in Ghana, to serve rising demand in the country and region for dairy products.

The new fully-owned subsidiary, Arla Foods Ltd., will be based in Accra, Ghana and will supply products from the company’s Dano range also sold in Nigeria, including powdered milk, which is in demand among the rapidly growing middle class in urban areas, and butter and cheese from value-added brands like Arla and Lurpak.

“Ghana is a well-developed food market in West-Africa, where Arla has a lot to offer consumers. More families in the growing middle-class are increasingly demanding safe and affordable nutrition, and West-Africa currently faces a milk deficit, which gives Arla an opportunity to provide dairy products that meet the consumers’ needs,” says Steen Hadsbjerg, vice president of Arla’s business region in Sub-Saharan Africa.

The move by Arla is in line with the company’s business strategy, Good Growth 2020, which aims to develop new markets for Arla’s products outside the EU.

As part of this strategy, Arla aims to triple its revenue in Sub-Saharan Africa by 2020, where it already has packaging operations in Nigeria, with significant growth in several Northern and Western African countries.

The new subsidiary will begin selling Arla’s branded dairy products in Ghana from September 2017 in response to growing demand for nutritious dairy products.

It will manage a re-packaging facility in Tema Industrial Park close to Accra as well as sales and marketing of the products, with distribution carried out by local distributors.

“We are entering Ghana to build a long-term business, and that requires strong, local partners. We are therefore pleased to join with an experienced partner with a strong distribution network in the country,” says Steen Hadsbjerg.

The company currently constructing a re-packaging facility in Accra, where it will initially employ 8 people, but the total number of employees is expected to increase as the market develops.

September 1, 2017.

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