Rationalisation leads to staff cuts at Akafa

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18 August 2005
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As production of speciality milk powder products is to be consolidated at fewer plants, 44 out of 325 staff at the milk powder factory, Akafa, in Svenstrup, will be made redundant during the autumn.

This follows a decision to cease production of a number of the factory’s speciality products by the end of 2005. The current production will be transferred to, for example, Arla’s dairy in Götene, Sweden. Other products will be discontinued entirely.

Consequently, the milk powder factory will now focus on its core business, i.e. retail packed full-cream milk powder and produce new packs of retail milk powder, especially for the Asian market. Production will also become more automatised.

“We have to continually take a close look at our production,” said Factory Director Niels Kjærsgaard. “As a result, we have decided to discontinue a number of products, but begin production of a number of new full-cream milk powder products which require less manpower.”

The restructuring is part of Arla’s ongoing rationalisation process aimed at improving the milk price paid to the co-operative members.

Akafa’s Works Council was informed of the decision on Wednesday and a negotiation committee has been set up to find other work for the redundant staff.

Arla Foods is an international dairy company owned by 9,700 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.

Press contact

Arla Group Press Office
Arla Group Press Office (journalists/media only) pressoffice@arlafoods.com +4591310310
Åse Andersson
Åse Andersson Head of Media Press contact for Arla Foods in Denmark aasan@arlafoods.com +45 91 310 310 +45 89 38 10 00
Carina Østergaard
Carina Østergaard Corporate Communication Manager Press contact for Arla Foods International caoes@arlafoods.com +45 91 31 16 01 +45 89 38 10 00