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Arla plans business growth in sub-Saharan Africa

FBR Staff Writer Published 13 January 2015

Arla Foods has announced plans to increase its business in sub-Saharan Africa over the next two years, through sales of powdered milk and UHT milk.

Arla

The company intends to increase its annual revenues of around DKK650m ($103.4m) to DKK2bn ($318.1m) in 2017 without bringing negative consequences for the local farming sector.

Arla has introduced new initiatives to ensure that its global business does not leave a negative footprint in developing countries.

Arla will update its human right policy in its code of conduct in order to comply with the UNGPs and the OECD guidelines by 15 July 2015, as well as introducing due diligence procedures that will meet the UNGPs and the OECD guidelines by 31 October 2015.

The company claims that its human rights due diligence procedures will identify and prevent as far as possible actual and potential adverse human rights effects caused by Arla's business activities or to which the company may contribute, in particular in relation to our ongoing or planned activities in developing countries.

Currently, the company sells products in Nigeria and the Ivory Coast, with plans to focus on Ghana, Senegal, Congo as well as other markets in East Africa.

Arla International Business Group head Finn Hansen said: "More and more African consumers demand types of dairy products that cannot always be produced locally in adequate volumes.

"We offer good nutrition through our powdered milk products, and simultaneously we want to ensure that our business does not have any negative effects on local farmers."


Image: Arla eyes business growth in sub-Saharan Africa without bringing negative consequences for the local farming sector. Photo: courtesy of Arla Foods.