SWEDEN – Arla Foods, which last week said its ideal scenario would be for all EU countries to join the euro, has revealed its disappointment at the result of Sweden’s referendum on joining the single European currency.

Deputy managing director Ake Modig said that joining the single currency would undoubtedly have been good for the company, as it would give some more stability in exchange rates in the countries it operates in.

He said: “We want to see long term stability. When the Swedish kronor rises, there are short term gains, but that’s what they are – short term. The disadvantages outweigh the advantages. When the Swedish kronor falls, it means rising packaging and energy costs in Sweden and this affects both the business and the individual milk producer in Sweden.”