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Market pressures force Arla Food Ingredients shake-up

By staff reporter , 14-Sep-2005

Fighting a challenging market climate, Arla Foods shakes up its structure in step with changing consumer needs, the dairy ingredients firm said today.

The owner of Arla Food Ingredients, the supplier of the sweetener tagatose made from milk sugar lactose, said the firm's activities will be centred on four major business areas, Consumer Nordic, Consumer International, Consumer UK and Global Ingredients.

The group, like many other European dairy processors, is grappling with intense cost pressures.

The whole dairy sector has seen a rapid shift towards value-added products, such as branded milk, in an attempt to push up earnings.

Peder Tuborgh, Arla Foods' managing director said the new structure "will strengthen Arla's positions in the Nordic area and in international markets and thus assure its milk producers of a tenable milk price, now and in the future."

Arla's milk protein and whey protein activities will fall under the Global Ingredients unit, as will the production of powder and protein products. Peter Lauritzen, the current director of Arla Foods Ingredients will remain responsible for the 1,600-strong business area.

Turnover for milk powder is DKK 4.7 billion.

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