Arla teaming up with Egyptian dairy kings
The Danish dairy giant Arla has announced it will team up in a joint venture with the Egyptian dairy company Juhayna as part of a sales and marketing offensive in Egypt.
Juhayna produces dairy and juice products throughout Egypt, but it has little in terms of butter, cheese and cream – which are Arla’s core competencies in the Middle East and Africa.
“It is a very good match for both parties,” said Rasmus Malmbak Kjeldsen, Arla’s senior vice president of the Middle East & Africa.
“Juhayna has a nationwide distribution network, and we are not competing within the same product categories. Together we will now have a broader product portfolio, which strengthens the business of both parties.”
Juhayna will own 51 percent of the new joint venture – named ArJu Food Industries – while Arla will own 49 percent.
Furthermore, the Danish company will be responsible for daily operations that are geared to marketing and selling Arla’s products.
The joint venture, which will kick off in October this year, will initially employ about 40-50 employees, but that figure could increase to over 100 in the coming year or two.