Arla responds to rise in Africa demand with new Ghana site

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 the country from September 2017 in response to growing demand for dairy products.

Based in Accra, the company will supply products from its Dano range, which is also sold in Nigeria, including powdered milk, as well as butter and cheese from brands like Arla and Lurpak.

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

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.

Vice president of Arla’s Sub-Saharan Africa business region Steen Hadsbjerg said: “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.

“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”