Arla establishes new sales/packaging facility in Ghana

4 Sep 2017

Arla is adding another market to its Sub-Saharan Africa business region by establishing a new sales and packaging facility in Ghana that will begin selling Arla’s branded dairy product.

Arla establishes new sales/packaging facility in Ghana

Arla is adding another market to its Sub-Saharan Africa business region by establishing a new sales and packaging facility in Ghana. The new subsidiary will begin selling Arla’s branded dairy products in Ghana from September 2017 in response to what the company says is growing demand for nutritious dairy products.

The new Arla-owned subsidiary, Arla Foods Ltd., will be based in Accra, Ghana and will supply products from its Dano range also sold in Nigeria, including powdered milk, which Arla says is in demand among the rapidly growing middle class in urban areas, and butter and cheese from value-added brands like Arlaand Lurpak.

The move by Arla is said to be in line with the company’s business strategy, Good Growth 2020, which aims to develop new markets for Arla’s products outside the EU to improve the milk price for the 11,200 farmer-owners who own the company. As part of its strategy, Arla says it aims to triple its revenue in Sub-Saharan Africa by 2020.

“Ghana is a well-developed food market in West-Africa, where Arla has a lot to offer consumers. More families in the growing middle-class are increasingly demanding safe and affordable nutrition, and West-Africa currently faces a milk deficit, which gives Arla an opportunity to provide dairy products that meet the consumers’ needs,” said Steen Hadsbjerg, vice president of Arla’s business region in Sub-Saharan Africa.

The new subsidiary in Ghana will manage a re-packaging facility in Tema Industrial Park close to Accra as well as sales and marketing of the products. Distribution will be carried out through local distributors.

“We are entering Ghana to build a long-term business, and that requires strong, local partners. We are therefore pleased to join with an experienced partner with a strong distribution network in the country,” said Hadsbjerg.

Arla is currently constructing a re-packaging facility in Accra, and has begun recruiting employees for the site, which is expected to be operational by September. The site will initially employ eight people, but the total number of employees is expected to increase as the market develops.