One of the key strategic markets for Arla to succeed in Southeast Asia is Bangladesh. Arla has had a presence in the country for the last 57 years and the company said the company is doing well thanks to the continuous growth of Arla Dano milk powder.
The brand is now the best known in the category in Bangladesh, having been crowned best milk powder brand for three consecutive years, enabling Arla Foods to establish itself as one of the biggest international dairy players in the country.
Arla is working hard on a corporate responsibility program in Bangladesh. The cooperative is working to address malnutrition in a country in which 56% of children are underweight, coupled with a significant proportion of the population living on less than $1.90 per day.
Arla's solution is Dano Daily Pushti milk powder. Launched in 2016, the fortified milk powder is the first of its kind in Bangladesh.
Peter Hallberg, Head of Arla Foods Bangladesh, said, "The product gained popularity very quickly. Families who could never afford to consume milk in the past, are now able to drink it on a regular basis. The success of Dano Daily Pushti has inspired us to develop new, nutritious products for low income consumers."
Demand and a dairy deficit
Local dairy production only meeting 40% of Bangladesh's demand for milk is also on Arla's agenda. As part of the growth strategy for the country, plans are being developed to support the development of the local dairy industry so more milk can be locally sourced.
Working with relevant government agencies is crucial, which is why, as part of his visit to Bangladesh last week, Tuborgh met with the minister for local government, rural development and cooperatives.
At the meeting, he cited Arla's work in Nigeria, where Arla is already actively engaging with the local dairy sector, a model that could be replicated in Bangladesh.
"I enjoyed spending two days with a very skilled and engaged Arla team in Bangladesh and I was very impressed with their level of engagement and ambition. They clearly understand the responsibility we have as the leading international dairy company operating in the country,” Tuborgh said.
“Our Arla Dano milk powder brand has a very strong position and the team is very much aware of the importance of meeting consumers' needs and making nutritious and affordable products available to as many people as possible in a country that still faces a lot of nutritional challenges. In addition, the team is very focused on maintaining high standards for product quality, food safety and workplace safety.”
Arla Foods’ retail and foodservice revenue in Bangladesh was €42m ($49m) in 2017 and is expected to increase further in 2018.