DENMARK: Middle East tensions force Arla cuts
Arla Foods is to cut production at its Bislev Dairy in Denmark by 150 tons per week because of falling Middle East orders.
Several Muslim leaders in the Middle East have called for Arla products to once again be boycotted following the re-publication of satirical cartoons depicting the Prophet Mohammed in several Danish newspapers.
The newspapers published the cartoons out of solidarity when a plot to assassinate the cartoonist behind the original cartoons - first published in 2006 - was uncovered by Danish police earlier this month.
Arla, which saw its Middle Eastern sales collapse the cartoons were first published, said about ten employees would be affected by the reduced production of dairy products.
"It's an unclear picture at the moment," said Arla Foods sales director Finn Hansen. "Some customers are re-ordering and others are holding back because they are unsure how things will develop. We're not experiencing a real boycott, more of a general hesitance. All in all we have to reduce production to reflect true sales."
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