Arla expands business within the African frontiers, establishes new facility in Ghana

Date: 2017-08-31   Author: Saipriya Iyer  Category: #market

Arla expands business within the African frontiers, establishes new facility in Ghana

Renowned European dairy behemoth, Arla, has announced its decision of expanding its footprints in the Sub-Saharan African belt, by means of establishing a new sales and packaging facility in the Republic of Ghana. This facility marks the ingression of Arla in the Sub-Sahara region -  a move that may, as stated by experts, help the company strengthen its foothold across Africa.

For the uninitiated, Arla Foods is an international dairy co-operative based in Denmark, with numerous subsidiaries including Arla Foods UK, Arla Milk Link Ltd., Arla Foods AB, Arla Foods Ingredients, the National Cheese Company, Ltd., and more. As a part of its expansion strategy, the dairy giant plans to triple its overall revenue in Sub-Saharan Africa by the year 2020.

Steen Hadsbjerg, the Vice President of Arla's unit in the Sub-Saharan Africa belt, has been quoted stating that Ghana, being a rather highly developed food business pocket in West Africa, is an ideal place suited for Ala’s expansion, since the company will have a great deal to offer its consumers. Hadsbjerg has also mentioned that there are two major determinants that will help Arla consolidate its position in the Ghana market. One, most of the middle-class populace in the region have been increasingly demanding affordable, safe nutritional products, and two, West Africa has presently been facing a milk deficiency crisis. Both of the aforementioned factors imply the fact that Ghana is slated to be a lucrative growth avenue for the fermented dairy market giant, providing it with the opportunity to sufficiently meet the demands of its consumers.

Arla’s initiative to expand its business in Africa is reportedly in line with the firm’s business strategy - Good Growth 2020, that has been conceived with the aim of developing new markets for the processed cheese industry player’s products outside the European Union in a bid to improve the prices of milk and milk products for the farmer-owners who have the possession of the company. For the record, the number of these farmer owners across the countries of Sweden, Luxemburg, Netherlands, Denmark, Belgium, UK, and Germany surmounts 11,200.

The subsidiary in Ghana will commence the sales of Arla's branded dairy products from the month of September. The Accra-based subsidiary will apparently supply the products from the Danish-headquartered Dano product range, which has recorded commendable sales in Nigeria. The products principally include powdered milk, cheese, and butter, sourced from Lurpak, finding their niche amidst the growing middle populace in the urban setting.

If sources are to be believed, the new enterprise will manage the re-packaging facility in the Tema Industrial Park, located near the vicinity of Accra, in addition to handling the marketing campaigns of the products. Arla has presently commenced the construction of this re-packaging facility and has also begun to recruit employees. The subsidiary, which is expected to go on floors next month, is reported to initially employ only eight people, which will gradually increase as the market scope widens.

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Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

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