Russian import ban a step back for Arla

Boycott could lead to job cuts

August 8th, 2014 9:17 am| by admin

The Russian government’s decision to boycott agricultural products from the EU will have an immediate and significant impact on the Danish dairy giant Arla.

Arla has suspended all production of dairy products for the Russian market because of the boycott, a market worth about a billion kroner for Arla in 2013.

“Our focus now is to ensure the viability of our owners’ milk by tailoring our production to other products which we can sell on other markets,” Peder Tuborgh, the head of Arla Foods, said.

Tuborgh admitted that the loss of the Russian market would have consequences for Arla because the company had made long-term investments into milk brands, distribution and customer relations in that important growth market.

READ MORE: Russian sanctions threaten Danish agriculture

Jobs on the line
The stopping of exports is a step back for the Danes and could lead to job cuts within the company.

“It’s too early to say how much it will mean in kroner and øre, but I can’t rule out that it will have consequences in terms of jobs at our dairies,” Astrid Gade Nielsen, the head of communication in Arla, told Børsen.

In particular, Arla exports butter and cheese to Russia and it is now trying to figure out which other markets that can replace that now closed market.

Along with the EU – the US, Canada, Australia and Norway also made Russia’s banned list.

These university lecture halls are getting bigger every year
The University of Christiansborg: How politicians are saying goodbye ballot box, hello boardroom
Politicians are getting younger and some have many working years ahead of t...
Higher education is also facing a shortfall (photo: iStock)
‘Tighter framework’ impairing schools
On September 29, the Venstre government presented its budget proposal for 2...
The cost of fuel accounts for up to 40 percent of the costs associated with running a fishing vessel (photo: iStock)
Danish government supporting fishing drone program
The Environment and Food Ministry is contributing 1.7 million kroner to a p...
Court: failings in delivery procedures (photo: iStock)
Danish fraud squad’s postal blunder costs prosecution in stock manipulation case
An administrative mistake by the fraud office, Statsadvokaten for Særlig ...
It was a good day for Danish swimming (photo: Dansk Svømmeunion)
Denmark to host 2017 European Swimming Championships
The European Swimming Federation (LEN) has announced today at its congress ...
A general suicide prevention program and special campaigns focusing on girls and older men are at issue (photo: iStock)
Danish government proposes more cuts to suicide prevention
The government has been attracting criticism since announcing at the end of...