Arla Foods and its Greek partner, Delta Dairies, have agreed to terminate their joint venture for local production of feta with effect from January 1, 2004.

Arla Foods’ Greek subsidiary, however, will continue to import dairy products to the Greek market.

The move follows unsatisfactory results from the Greek venture. Arla Foods Hellas, which is 60% owned by Arla Foods and 40% by Delta, will be fully owned by Arla while Delta Dairies will take over Vigla, the existing production company.

“We’re now focusing on Arla Foods’ products and restructuring our business in Greece in order to achieve a satisfactory result for 2004,” said Divisional Director Torben Olsen, the Europe Division.

The two companies will, however, continue their sales partnership, which includes exports of feta to third countries.

Arla Foods entered into the joint venture agreement with Delta Foods in November 2000.

Arla Foods’ annual exports of cheese and Lurpak butter to Greece are worth approx. DKK 350 million.