Uncertainty continues to hang over Arla Foods in its key Middle
East dairy market, after it said sales there have been slow to
recover from a region-wide boycott against its products.
Arla UK's Cravendale milk brand has seen its strong growth stunted
by cheaper, supermarket milk in recent weeks, reminding processors
how easily private label could destabilise branded dairy growth in
Britain.
The UK dairy industry could profit from a drop in milk production,
said the chief executive of Arla UK on Tuesday, enabling the
industry to add value and raise earnings through the supply chain.
Early signs suggest a recovery on Britain's dairy market as both
Arla Foods UK and Robert Wiseman halt the margin rot with brand
development and price rises.
Arla Foods has said the boycott on its products in the key Middle
East dairy market was slowly lifting, thanks to its dominance in
certain areas of the Middle East dairy market.
As Arla Foods begins on the long road to recovery in its Middle
East dairy markets, DairyReporter.com delves into the nature
of consumer boycotts and the effects they may have.
Arla Foods says a boycott on its dairy products in the Middle East
will cost it at least €53m this year, as the firm tries to remain
positive about the long road to recovery.
Dairy group Arla Foods has signed an organic dairy supply deal with
discount retailer Lidl, as big food firms increasingly move in on
rising consumer demand for organic food.
A Danish court has fined Arla Foods €670,000 for abusing its
dominant position on Denmark's dairy market, further jeopardizing
the group's public image in the country.
Arla Foods said its future on the key Middle East dairy market was
in jeopardy, after the group stopped production for the area amid a
widescale boycott on Danish products by Muslim consumers.
Danish dairy group Arla Foods said sales had come to a standstill
in the firm's key Middle East region as Muslim consumers in several
countries boycotted Danish products.
The dairy group's new, lower calorie milk technology may help it
re-gain ground on its home Danish milk market, after dropping
almost 10 per cent in market share and losing another supply
contract to a smaller rival.
Dairy group Arla UK is set to launch Cravendale One Shot milk
drinks this month to compete directly with soft drinks and begin
making use of the firm's record investment in 2005.
