Arla Foods and the Swedish dairy company, Skånemejerier, Wednesday signed an agreement for joint production of butter and blends.

The agreement, which will come into force with effect from October 1, 2003, means that Skånemejerier will transfer its production of 6,000 tons of butter and blends to Arla Foods' butter dairy in Götene.

The decision, which will be considered by the Swedish competition authorities, means an additional four jobs at Götene.