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DISPATCHES FROM INTERNATIONAL WHEY CONFERENCE 2014

Russian embargo impact on Arla whey and lactose interests 'minimal': CEO

By Mark Astley+

12-Sep-2014

Russian embargo impact on Arla whey and lactose interests 'minimal'
Russian embargo impact on Arla whey and lactose interests 'minimal'
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The Russian embargo on Western food imports will have little impact on Arla Foods Ingredients' whey and lactose interests, says CEO Henrik Andersen.

Speaking with DairyReporter.com at the International Whey Conference in Rotterdam earlier this week, Andersen said the impact of the one-year ban on the import of various food products from the European Union (EU), United States, Australia, Canada, and Norway would be minimal on whey and lactose production.

"...unfortunate as it is for the dairy industry, for the lactose and the whey industry I don't think it's going to have a very significant impact," said Andersen.

"There's probably going to be some pluses and minuses, but the immediate impact I think is going to be minimal."

Arla Foods Ingredients has invested heavily in increasing its whey and lactose processing capabilities in recent years. Looking ahead, Andersen said it expects its new production levels to mirror future demand.

"When we decided on the investment we tried to make a projection on where the market could be in five or six years," said Andersen.

"On balance, we think it's going to be more or less a market where you'll see output that will match the demand."

"It's extremely difficult of course to project how much is going to be produced - almost as difficult to say how much is going to be demanded," he added.

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