In order to cut costs, the executive board at Sweden's Arla Foods has voted to close four dairies - two in Denmark and two in Sweden, by the end of next year.

The decision, which has been made as part of a cost saving programme, means that in Denmark the Glejbjerg Dairy will close at the start of April 2004 and that the Vellev Dairy will close at the beginning of September 2004. The company said that, wherever possible, the 77 employees involved with production at the two plants would be offered work at other Arla Foods dairies.

At the same time, the Board decided to transfer the annual production of 400 tons organic cheese from Tistrup dairy to Hjørring dairy.

In Sweden, åseda and Västervik cheese dairies are scheduled for closure by year end 2004, following the recent conclusion of negotiations with the relevant labour unions.

åseda dairy's production will be transferred to Nr. Vium Dairy in Denmark while Västervik's production will relocate to the Falkenberg dairy in Sweden.

åseda employs 25 people and Västervik 33.

The decisions are in line with Arla Foods' structural plan which was first established back in 2001 with the aim of rationalising capacity at Arla Foods' production units.