Farmer owned European co-operative Arla Foods has announced a supply chain investment of €335m globally this year, of which, £37.5m has been pledged to upgrade its UK production facilities. The company behind popular household brands likes Cravendale milk and Skyr yogurt is owned by 12,700 dairy farmers of which, 2,700 are in the UK. Arla plans to spend 50 percent more than last year on its bigger markets including Germany and the UK and devices to achieve a revenue increase by almost a third by 2020.
Investment on production plants has been submissive for the last two years as the company had to spend most of its revenue on farmers struggling with low dairy prices. With the improved market condition, the farmer owned cooperative has decided to uplift its production, packing and distribution facilities to create a better demand for its products.
Arla’s will buy new equipment for its Aylesbury production site for £3.5m to produce more of its popular skimmed milk brand BOB milk that was launched last year. The milk, that tastes like semi-skimmed has become a huge favorite among health-conscious shoppers. Another £5m will be spend on the Taw Valley creamery in Devon to enhance cheese production.
Peder Tuborg, chief executive of Arla, said the company has “ambition to expand production of branded high-quality products for Europe and emerging markets”.