Arla expands footprint in Ghana to supply nutritional dairy to African consumers

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30 Aug 2017 --- Arla is adding another market to its Sub-Saharan Africa business region by establishing a new sales and packaging facility in Ghana. The new subsidiary will begin selling Arla’s branded dairy products in Ghana from September 2017 in response to growing demand for nutritious dairy products.

The new Arla-owned subsidiary, Arla Foods Ltd., will be based in Accra, Ghana and will supply products from its Dano range also sold in Nigeria, including powdered milk, which is in demand among the rapidly growing middle class in urban areas, and butter and cheese from value-added brands like Arla and Lurpak.

The move by Arla is in line with the company’s business strategy, Good Growth 2020, which aims to develop new markets for Arla’s products outside the EU to improve the milk price for the 11,200 farmer-owners who own the company. As part of its strategy, Arla aims to triple its revenue in Sub-Saharan Africa by 2020.

“Ghana is a well-developed food market in West-Africa, where Arla has a lot to offer consumers. More families in the growing middle-class are increasingly demanding safe and affordable nutrition, and West-Africa currently faces a milk deficit, which gives Arla an opportunity to provide dairy products that meet the consumers’ needs,” says Steen Hadsbjerg, vice president of Arla’s business region in Sub-Saharan Africa.

The new subsidiary in Ghana will manage a repackaging facility in Tema Industrial Park close to Accra as well as sales and marketing of the products. Distribution will be carried out through local distributors.

“We are entering Ghana to build a long-term business, and that requires strong, local partners. We are therefore pleased to join with an experienced partner with a strong distribution network in the country,” notes Hadsbjerg.

Arla is currently constructing a repackaging facility in Accra and has begun recruiting employees for the site, which is expected to be operational by September. The site will initially employ 8 people, but the total number of employees is expected to increase as the market develops.

Arla Foods Ingredients

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Arla Foods Ingredients is a global leader in natural whey ingredients for products in a range of categories – from sports nutrition, beverages, bakery, dairy and ice cream to clinical and infant nutrition. 
 
The cornerstones of our business are innovative ingredients, world-class facilities and a staff of dedicated experts. Drawing on our portfolio of functional and nutritional whey proteins, milk minerals, lactose and permeate, our expert team delivers solutions that bring new food products quickly and efficiently to market. Our application centres run hundreds of customer product trials every week. All ingredients are produced using state-of-the-art processing technology at our plant in Denmark, or by one of our joint ventures in Argentina, Germany and the UK.
 
Arla Foods Ingredients Group P/S is a 100% owned subsidiary of Arla Foods, a global dairy company and cooperative owned by dairy farmers in Denmark, Sweden, the UK, Germany, the Netherlands, Belgium and Luxemburg.

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