Arla Foods to invest EUR 619 million in major projects

To expand capacity in growth sectors such as milk powder

2020 is expected to be another big investment year. Denmark based Arla Foods plans to invest a record EUR 619 million in major projects to expand capacity in growth sectors such as milk powder for the international markets by continuing the completion of a powder tower in Pronsfeld, Germany, expansion of mozzarella capacity in Branderup, Denmark, and upgrades to the newly acquired Bahrain production site, as well as significant investments into capacity increases for AFI.

In 2020 Arla will build on the momentum created in 2019 and further strengthen the cooperative’s competitiveness with focus on branded growth, the transformation and efficiencies programme, Calcium and increase its focus on taking action on the sustainability agenda across the whole value chain.

Brexit continues to be a risk, with the negotiations on the future UK/EU trading relationship taking place in 2020. There is the potential for tariffs and non-tariff barriers to be imposed which would add friction and cost to UK and EU trade. Arla is advocating for as close a trading relationship as possible to minimise these risks.

The end of 2020 also marks the completion of the Good Growth 2020 strategic period, and Arla expects to reach all its long-term financial targets.