News

Arla to shed jobs in Middle East move

7 Jun 2019

Parts of the production at three Arla Foods sites will be moved to newly acquired site in the Middle East as part of the farmer-owned company’s aim to bring new commercial opportunities to customers as well as its ongoing efforts to make its supply chain more efficient.

The move is not expected to take place until late 2020 and mid-2021, but Arla Foods says it is announcing the change in advance to ensure a smooth and transparent transition as well as timely solutions for affected staff.

Arla to shed jobs in Middle East move

In December 2018, Arla Foods announced an agreement with Mondeléz International to acquire its processed cheese business in the Middle East region, which is currently licensed under the Kraft brand. This deal was formally completed on May 28th, and Arla has now taken over the acquired operations.

The acquisition also gives Arla full ownership of a cheese production site in Bahrain, which provides Arla with the opportunity to further expand the company’s branded cheese production in the Middle East and North Africa region and to further improve overall efficiency in its supply chain.

Following the acquisition, Arla is now announcing its decision to move certain processed cheese and sterilized cream production lines from its Bislev and AKAFA sites in Denmark and from its Riyadh site in Saudi Arabia – all to the newly acquired site in Manama in Bahrain.

There are still a number of factors that can change the final numbers, Arla says. However, it is Arla’s current estimate that the following volumes will be moved:

+ Approx. 26,000 tons (annually) of processed cheese from Bislev, potentially impacting approx. 40 jobs

+ Approx. 18,000 tons (annually) of sterilized cream from AKAFA, potentially impacting approx. 35 jobs

+ The volumes of processed cheese to be moved from Riyadh is still to be confirmed.

“It makes a lot of sense for us to place the production of these exact products at the newly acquired site in Bahrain, since these products are primarily made for the Middle East and North Africa and in lesser degree for other markets. It gives us a strong regional supply chain footprint that enables us to secure long-term competitiveness in the region through scale and efficiency, and the pilot plant at our new Bahrain site will allow us to innovate in new ways within this category,” said Head of Supply Chain in Arla, Executive Vice President Sami Naffakh.

Located in Manama, Bahrain the newly acquired site currently has a capacity exceeding 66,000 tons. Built in 2008, it includes an on-site innovation pilot plant and has won multiple awards for manufacturing excellence within core cheese categories. By moving the production of processed cheese and sterilized cream to this site, Arla also expects to improve the shelf-life of these products by four weeks as transport time to customers in MENA is reduced significantly.

The announced changes will not be fully implemented until late 2020 and mid-2021. However, Arla has chosen to inform employees at the three affected sites now.

"It is important for us to be as open about the future as we can be with our employees, and since the coming months will require a high degree of involvement of staff at each affected site we have decided to inform our employees now about the decision to move parts of our production to the new site in Bahrain,” said Naffakh.

“As soon as we are able to confirm the exact volumes that will be moved, we will engage with affected employees to ensure they are supported to move on in a good way, either to jobs at other Arla production sites or outside Arla. We have a good track record of finding ways to help people into new job opportunities, especially when there is a relatively long time period of time in which to work this out. They can bring valuable production expertise to our other sites, which is an opportunity we do not want to miss," said Naffakh.

Related tags

Dairy

Get more of our news on Google

Set Ingredients Network as a 'Preferred Source' to get quicker access to the news you value.

Add us now

Related news

Kellogg accelerates work to remove artificial colours from all US cereals

Kellogg accelerates work to remove artificial colours from all US cereals

3 Sep 2026

WK Kellogg has announced an accelerated timeline to eliminate all artificial colours and the chemical preservative, BHT, across its full US portfolio of cereals and cereal packaging.

Read more 
Skimpflation: An ‘unfair’ and risky approach to keeping prices low

Skimpflation: An ‘unfair’ and risky approach to keeping prices low

2 Sep 2026

Consumers see skimpflation – reducing the quality of ingredients due to rising costs – as more unfair than shrinkflation, making it a risky strategy according to recent research.

Read more 
‘Urgent gaps’ in achieving 2030 food system goals

‘Urgent gaps’ in achieving 2030 food system goals

27 Aug 2026

Global food systems are failing to meet 2030 targets across indicators including health, environment, and resilience, according to a report co-authored by the Food and Agriculture Organisation (FAO).

Read more 
Popular barbecue staples experience sharp price increases

Popular barbecue staples experience sharp price increases

19 Aug 2026

The typical cost of US shoppers’ barbecue baskets has risen by 12% over the past year – the fastest annual rise in a decade, figures from The Economist show.

Read more 
Savoury protein snacks shake up the on-the-go market

Savoury protein snacks shake up the on-the-go market

10 Aug 2026

Sweet flavours have dominated the high-protein snack category but savoury snacks, such as cheese bars and meat sticks, can appeal to health-conscious consumers.

Read more 
Digital twin technology gains ground in food manufacturing

Digital twin technology gains ground in food manufacturing

6 Aug 2026

Food and beverage companies are increasingly turning to digital twins to optimise and automate manufacturing processes, but opportunities stretch far beyond this, say experts.

Read more 
Nestlé invests in regeneratively farmed wheat for KitKat

Nestlé invests in regeneratively farmed wheat for KitKat

5 Aug 2026

Nestlé will pay a premium for Wildfarmed’s regeneratively farmed wheat but the CPG remains reticent to promote the move on packs of its KitKat bars.

Read more 
Codex sets global thresholds for ‘may contain’ labels

Codex sets global thresholds for ‘may contain’ labels

3 Aug 2026

Codex Alimentarius has adopted its first global guidance on when to use “may contain” allergen warnings, setting thresholds intended to stop the label being used as blanket legal cover.

Read more 
EU sets maximum MOAH levels to protect human health

EU sets maximum MOAH levels to protect human health

28 Jul 2026

The EU will adopt maximum levels for mineral oil aromatic hydrocarbons (MOAH) in food to protect human health. What do manufacturers need to know?

Read more 
UK publishes guidance on SPS food trade agreement with EU

UK publishes guidance on SPS food trade agreement with EU

27 Jul 2026

The UK government has shared guidance on how food businesses can prepare for its upcoming Sanitary and Phytosanitary (SPS) agreement with the EU.

Read more