Arla closes factory in Denmark

Arla Foods announced on Thursday 25 January that it would soon close a factory in Aarhus (Denmark). This is due to a lack of expansion options and the high demand from European consumers.

Brabrand Dairy, as the factory is called, mainly produces fermented milk products (including yoghurt and skyr). The factory will be operational until mid-2019. "Most of the production will remain in Denmark, but some will also be moved to production sites in the Netherlands and Germany," says Jakob Bernhard Knudsen, head of Arla Denmark.

The factory is closing to better serve the demand from Europe. In addition to the lack of expandability, equipment costs in Denmark are also quite high.

Improved production
The dairy cooperative reports that there is more demand from Europe. The objective is therefore that production must be improved. Not only do more products have to be produced, but the aim is also to improve quality. The factories in the Netherlands, Germany and Denmark are therefore going to specialize more in certain products.

Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.

aj.doorn@boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.