News
Arla to shed jobs in Middle East move
7 Jun 2019Parts 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.
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 news
UK High Court allows Oatly to use 'milk' on packaging
17 Jan 2024
Oatly has scored a landmark victory in the use of the word milk after the UK High Court ruled against the country’s dairy industry and permitted the term to be used on packaging.
Read moreHow brands are overcoming challenges in the plant-based sector
16 Jan 2024
Following the turbulent evolution of the plant-based market in recent years, industry players are finding innovative ways to tackle challenges such as taste, price, and nutrition and are in turn unlocking new opportunities for growth.
Read moreMapping the rise and fall and (rise, again?) of the plant-based sector
15 Jan 2024
Recent challenges in the plant-based sector such as consumer acceptance and price inflation led to dips in certain regions while others surged. Kalina Doykova, senior research analyst at Euromonitor, shares her insights into the evolution and future tr...
Read moreMeet the innovative ingredients showcased at Fi Europe’s New Product Zone
3 Jan 2024
The Food Ingredients category at Fi Europe’s New Product Zone featured 19 distinct and innovative products. From fermented delights to sustainable proteins, these ingredients are ready to make their mark in the market.
Read moreFi Europe’s New Product Zone elevates the nutrition of everyday indulgences
22 Dec 2023
At Fi Europe 2023's New Product Zone, eight health ingredients, each offering an enhanced nutritional profile of various products, were on display. These ingredients address the evolving needs of the food and beverage industry and cater to consumers se...
Read moreFi Europe’s New Product Zone explores fresh possibilities with five natural ingredients
20 Dec 2023
Fi Europe 2023's New Product Zone unveils five natural ingredients, each catering to the growing demand for clean products and embodying ethical and sustainable choices for today's conscious consumers.
Read moreExploring the path to replicating breast milk's magic in infant formula
17 Nov 2023
While breast milk is often hailed as nature's gold standard for infant nutrition, it’s not always readily available. Enter infant formula enriched with human milk oligosaccharides (HMOs), a game-changing product that seek to mirror the composition of b...
Read moreA look at the latest ‘gut health for immunity’ product launches
25 Oct 2023
From Lipton’s probiotic tea to Babybel’s snack-sized cheeses and smoothie powders, we look at some recent product launches that can benefit immune health by targeting the gut microbiome and a healthier digestive system.
Read moreAdvocacy groups condemn EU Commission for backpedalling on animal rights
3 Oct 2023
Amid rumours that the EU may abandon its plans to improve animal welfare in farming and end the use of cages, many stakeholders have condemned this possibility and urged the EU to reconsider.
Read moreMeurens Natural: Pioneering the Way in Oat-Based Nutrition
12 Sep 2023
Meurens Natural, a European trailblazer in the organic sector for more than 30 years and expert in hydrolyzed oat syrups, powders, and proteins.
Read more