In selling the division, which primarily imports foreign made cheeses into Denmark and Sweden where the group operates, Arla will be selling the operations on to Delimo's main supplier.

The announcement marks the latest measure by the group to reduce its investment in the cheese market. It is one of Europe's first leading dairy cooperatives to cut cheese operations amidst the increasing costs of obtaining raw milk.

Arla Food's vice chief operating officer Povl Krogsgaard said the sale to Lactalis made strategic sense from the company's point of view.

"We have contributed to the import of a huge variety of dairy products to chilled cabinets," he stated. "We have now reached a stage where it is natural for the main supplier, Lactalis, to take the business further."

Source: foodproductiondaily.com