Arla Foods agrees JV with Juhayna

Arla Foods and the Egypt-based dairy company Juhayna have agreed to form a joint venture that will sell Arla’s products across Egypt.

Juhayna Food Industries is a manufacturer of UHT-milk, yoghurt and juice but it has a very limited production of butter, cheese and cream, which Arla has specialised in across the Middle East and Africa.

“It is a very good match for both parties. Juhayna has a nationwide distribution network, and we are not competing within the same product categories. Together we now get a broader product portfolio, which strengthens the business of both parties,” says Arla’s senior vice president of the Middle East & Africa, Rasmus Malmbak Kjeldsen.

Juhayna owns 51 per cent of the new joint venture company, while Arla owns 49 per cent. However, Arla will be in charge of the daily management of the joint venture. The ambition is for the company to also start up local production in Egypt.

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