Reflecting the company’s new strategy, the budget focuses on certain selected markets and products, while other areas will have lower priority.
“Because 2009 will be a difficult year, we must concentrate on two areas,” said CEO, Peder Tuborgh. “On the one hand, we must continue to pursue our chosen strategy, a strategy in which we have confidence, and on the other hand, we must control our costs and generate savings wherever we can.
“We believe this is the way to get through the current slowdown. In other words, we have weighed the short-term challenges against our long-term, strategic ambitions and found a sensible balance based on the goal of securing the best possible earnings.”
Arla Foods’ aim of paying one of Europe’s highest milk prices will be achieved through a policy of tight, targeted financial management, Tuborgh added. “All parts of the business will have to be made more efficient and productivity will be improved in order to minimise cost increases at a time when, unfortunately, we can expect turnover to fall.”
Regardless of the difficult market conditions, the company had to continue to develop the business and increase profitability. “The fact that we have a strong company and a strong strategy will see us through,” said Tuborgh.
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