Arla Foods continues its expansion in Africa through two new joint ventures in Nigeria and Senegal. Two local partners, Tolaram in Nigeria and Attieh Group in Senegal, will provide distribution for Arla to grow and develop its business in West Africa.
This move is part of Arla’s strategy to develop new markets outside the EU to ensure that Arla can create as much value as possible from the farmer owners milk. Arla aims to grow its annual revenue from approximately €90 million to around €460 million in 2020. This is to be initially achieved through sales of powdered milk and liquid milk, which is in high demand among the rapidly growing middle class in and around the big cities, and eventually also butter and cheese, the company says.
Steen Hadsbjerg, head of Arla’s business region in Sub Saharan Africa says, “With the improved living standards, families are increasingly demanding safe and affordable nutrition. West Africa faces a milk deficit, which gives Arla an opportunity to provide milk powder and other dairy products that meet the consumers’ needs.
“We are here to build a long-term business, and that required strong local partners. We are therefore pleased to join with two experienced partners in Senegal and Nigeria.”