The agreement is in keeping with Arla’s ambitions to become one of Russia’s leading dairy companies within yellow cheese.
Following several years of growing exports to the Russian market, Arla now intends to set up local production in Russia for the first time. Production will be centered on the city of Kalacheevsky in south-west Russia where Arla’s Russian subsidiary – Arla Foods Artis – in partnership with the Molvest Group will be converting one of Molvest’s existing dairies to yellow cheese production. The two parties have agreed on terms for joint production at the dairy.
The terms and conditions are subject to approval from the Russian Federal Antimonopoly Service (FAS).
Molvest will be responsible for collecting the milk from farms in the area as well as weighing-in and processing the milk at the dairy. Arla will subsequently buy the milk and with its experience and expertise from its Scandinavian operations will be responsible for the production of yellow cheese at the dairy. The finished products will be distributed and sold by Arla.
For Arla, the conversion of the dairy represents an investment of DKK 25 million.
Source: Arla
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