Arla is adding another market to its Sub-Saharan Africa business region by establishing a new sales and packaging facility in Ghana. The new subsidiary will begin selling Arla’s branded dairy products in Ghana from September 2017 in response to growing demand for nutritious dairy products.
The new Arla-owned subsidiary, Arla Foods Ltd., will be based in Accra, Ghana and will supply products from its Dano® range also sold in Nigeria, including powdered milk, which is in demand among the rapidly growing middle class in urban areas, and butter and cheese from value-added brands like Arla® and Lurpak®.
The move by Arla is in line with the company’s business strategy, Good Growth 2020, which aims to develop new markets for Arla’s products outside the EU to improve the milk price for the 11,200 farmer-owners who own the company. As part of its strategy, Arla aims to triple its revenue in Sub-Saharan Africa by 2020.
“Ghana is a well-developed food market in West-Africa, where Arla has a lot to offer consumers. More families in the growing middle-class are increasingly demanding safe and affordable nutrition, and West-Africa currently faces a milk deficit, which gives Arla an opportunity to provide dairy products that meet the consumers’ needs,” says Steen Hadsbjerg, vice president of Arla’s business region in Sub-Saharan Africa.
New production site being constructed
The new subsidiary in Ghana will manage a re-packaging facility in Tema Industrial Park close to Accra as well as sales and marketing of the products. Distribution will be carried out through local distributors.
“We are entering Ghana to build a long-term business, and that requires strong, local partners. We are therefore pleased to join with an experienced partner with a strong distribution network in the country,” says Steen Hadsbjerg.
Arla is currently constructing a re-packaging facility in Accra, and has begun recruiting employees for the site, which is expected to be operational by September. The site will initially employ 8 people, but the total number of employees is expected to increase as the market develops.