Arla to close German plant after fall in demand for MonRocco hard cheese
Earlier today, Arla announced that after "careful consideration" it has concluded that operations at its plant in Kisslegg-Zaisenhofen are no longer "economically viable."
The plant will close on February 29 2016 with the loss of 38 jobs, it said.
"This was not an easy decision to take," said Winfried Meier, senior vice president for Central Europe, Arla Foods.
"In recent months our experts have carefully examined and worked through a variety of options. Unfortunately it became clear that continued operation of the Kisslegg site was not economically viable."
The background for the closure, Arla said, was a fall in demand for Allgäuland brand MonRocco - hard cheese produced at the Kisslegg plant.
"Over the past three years, competition has intensified dramatically. In Eastern Europe in particular, ‘MonRocco’ can be produced much more cheaply than is possible at the Kisslegg site," said Meier.
"Recently, opportunities to sell this product and still cover costs have been severely restricted.”
Arla - owned by 12,700 dairy farmers across Denmark, Sweden, Germany, the UK, Belgium, Luxembourg and the Netherlands - expects to better utilize nearby facilities in Bad Wörishofen, Sonthofen and Wertach following the Kisslegg closure.
