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Arla Targets Russia, China and Middle East in Strategy

11 January 2013

GLOBAL – Arla has announced that it will be focusing on markets outside of the EU in a 2017 growth plan that aims to double revenues in a section of the business.

Markets in Russia, China, the Middle East and Africa are expected to grow rapidly according Peder Tuborgh, Arla Foods Manager. It forms the main element of the Arla business strategy for the next five years.

Arla’s strategy hopes to profit from emerging markets in Russia, China, Middle East & Africa. Arla have said these markets will be targeted with increased investment in marketing, distribution networks and cooperation with local partners in these markets between now and 2017.

By 2017 the overall revenue from Arla’s strategic business generated in these markets is set to increase from approximately 3.5 to 10 billion Danish Krone. The strategy to export milk out of the EU is a reaction to the impending quota termination in 2015. EU growth is expected to stagnate and Arla is predicting milk yield rises of at least one billion kilos a year.

As part of the announcement Arla have said that Arla Food Ingredients (AFI), one of Arla’s most profitable ventures is targeted to double global AFI revenue from 2.5 billion to over 5 billion Danish krone.

One of the most profitable areas within the Arla Group is Arla Foods Ingredients (AFI). AFI is responsible for the production and sale of whey protein and lactose- and milk-based ingredients to the food industry.

The target for AFI in Arla's strategy for 2017 is to double its revenue globally from approximately 2.5 to over 5 billion Danish Krone. The scheme is designed with company efficiency in mind.

”We have launched a large number of programmes that will enable us to work faster, leaner and more simply. Our overall objective is to save 2.5 billion Danish Krone by the end of 2015,” said Peder Tuborgh.

”We are four years into the 2015 strategy period and have achieved many of the strategy’s objectives, and are close to the revenue target of 75 billion DKK. Our recent growth must deliver an even higher return to our cooperative owners, and releasing Arla’s new potential is a major task,” said Peder Tuborgh.

TheCattleSite News Desk



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