Further savings in Arla Foods
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- 1 min
- Published:
- 27 May 2005
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All Arla Foods’ staff functions and divisions will be required to cut their 2005/06 budgets by 3-5% compared to 2004/05.
In addition, a further cut of 2% will be implemented to offset future wage increases.
The savings programme will centre on three main areas:
• Operations
• Investments
• Purchasing agreements
”We’re currently experiencing a decline in food prices while, at the same time, farmers are coming under pressure from the EU reform and the associated structural changes,” said Group Director Povl Krogsgaard.
“Consequently, there are two reasons for reducing costs: to obtain a higher milk price in the short-term, but also to ensure that we can continue to meet the targets in our strategy plan and strengthen our general position so that we can pay the highest possible milk price in the longer term.”
Arla Foods is an international dairy company owned by more than 8,400 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world's largest manufacturer of organic dairy products.
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