New strategy for Arla

Arla has more raw milk in its care than ever before and more is to be expected over the next five years. This provides the business with opportunities for global growth to create value for its 12,700 farmer owners.

Unveiling its new strategy 2020, Arla is setting out to grow its business in eight global dairy categories and six market regions around the world, as the company moves towards 2020 as one effective and unified cooperative.

Since 2007 Arla’s milk volume has grown from eight billion kilos to 14 billion kilos through mergers and, since April 2015, through organic growth in the milk production of Arla’s farmer owners, as EU milk quotas no longer exist. It is anticipated that Arla’s farmers will grow their milk production by another 2.5 billion kilos by 2020, giving Arla more growth opportunities than ever before.

“We are launching a new strategy. However it is not a radical change of direction for Arla. Over the past years we have prepared for this moment by expanding our size and our competencies. In Strategy 2020 we will focus even more on organic growth and growing our brands through innovation that focuses on what consumers and customers want and need. This will help us create the most profitable growth with our farmer owners’ milk,” says CEO of Arla Foods, Peder Tuborgh.

“We are not pulling out of any markets that are not mentioned, but we will focus our innovation, investments and competences on those lead markets. Over the coming five years we expect about half of our growth to come from outside the EU as we grow market shares while the other half will come from within the EU as we grow in key categories and add value through innovation,” adds Tuborgh.