Arla down for more business down under

New joint venture project to quintuple business in Australia

In an effort to reach its goal of quintupling its business down under, the Danish dairy giant Arla has agreed to enter into a joint venture with Australia's largest cheese importer, F Mayer Imports.

The new venture company will be named 'Arla Foods Mayer Australia Pty Ltd’ and will market, sell and distribute imported and local dairy products in Australia.

“Although the overall Australian dairy market is only seeing low growth rates, the market for specialty cheese is lively and growing,” Lars Eggers, the managing director for Arla in Australia, said.

”Australians want to be inspired by quality food, including artisan cheese, and the focus on food inspiration and a rich food culture is clearly on the rise. We believe we have the products to tap into that movement.”

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1 billion by 2020
The new company will be based in Sydney. Officially scheduled to launch on 4 May 2015, it will market the Castello, Lurpak and Arla brands along with products from other producers in Europe and Australia.

Arla will own 51 percent of the company, while F Mayer Imports will own the remaining 49 percent.

The new joint venture is expected to increase Arla's annual turnover in Australia from 200 million kroner per year to 1 billion kroner in 2020.

“Castello cheese has been sold in Australia for more than 35 years and our partner, F Mayer, has been sourcing specialty cheese from all the great cheese countries in the world for decades, so we have a good foundation to build on,” Eggers said.