“Across the world, dairies are foreseeing radical changes in the markets and are consequently looking to build partnerships and alliances between countries and continents,” Managing Director Jens Bigum said in his report.
Within this context he pointed to a series of alliances and joint ventures between Arla Foods and partners over the past eighteen months.
Such partners include National Foods in the United Arab Emirates, Delta in Greece, SanCor in Argentina and, most recently, New Zealand’s Fonterra.
“Interest in these types of partnerships has reached unprecedented levels and, as Europe’s largest dairy company, Arla Foods is not among the least popular,” said Jens Bigum, who emphasised that while Arla Foods takes a serious look at approaches of this type, any new alliance will have to fit in with the group’s current strategy plan.
“We don’t have the resources to link up with businesses who just want to increase their chances of survival – time is too short and competition too hard,” Jens Bigum said.
“Meanwhile, the retail trade is taking a hard look at its suppliers in order to cut back on the number. The aim of Arla Foods’ strategy plan, new structure and consolidation policy is to ensure that we remain among those selected,” he said.