Arla Foods’ plans for a new dairy in the Dominican Republic have been postponed.

Following a lengthy examination of the potential for setting up milk production in conjunction with the local distributor, Mejia Arcala, Arla Foods and Mejia have decided to postpone a decision until further notice. Although the concept for a new dairy for long-life milk in the Dominican Republic is sound, current economic conditions, including a 40% devaluation in the Caribbean island state, have led Arla and Mejia Arcala to conclude that the timing is wrong. Both companies will now monitor developments.

“We would like to produce milk in the Dominican Republic,” said Arla Foods’ Deputy Managing Director, Andreas Lundby. ”But without Mejia Arcala to distribute the milk, the project cannot currently go ahead.”

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