Arla Cuts Cheese to Ease Supply Burden

UK - Arla Foods is to cut cheese production by 6,200 tonnes until the new year in a drive to better deal with a dwindling global supply of raw milk.
calendar icon 18 September 2007
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The group, which is one of Europe's leading dairy processors, said that between 70 to 80 of its employees would be affected by the cuts to be made to four of its Danish plants and one site in Sweden.
The news reflects the growing pressure on dairy processors to restructure their operations to remain competitive amidst increasing raw material costs. Production of edam, danbo, fontal, havarti and rindless cheese will all be reduced, Alra stated.

Arla said that the extent of possible lay-offs was not yet clear, with the company targeting non-permanent and agency staff. Additionally, the group said it would also encourage staff to take holidays and attend courses, in a bid to avoid further upheavals to its operations.

"We are looking at all the options for retaining people as hopefully we shall need the staff again," stated Jens Refslund, Arla's production division director.

With the low season for cow's milk production commencing in the Autumn, Arla said it normally decided to cut production of its milk powder. However, due to the current high price on the market for powdered milks, the group said it would cut output of its cheese brands instead.

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