Danish based dairy company Arla Foods said that after meetings between group executives and the management of the group's divisions and staff, it has found ways to cut costs by 487m kroner (US$78.9m) for the next accounting year, compared with the current year, but that it still hasn't reached its target of saving a minimum 500m kroner, according to the AFX news agency.

The goal is to save 3-5% of costs. With the 487m kroner, Arla Foods has so far found cost savings of 3.6%t.

'We are very pleased with the will in the divisions and among staff to contribute to savings,' said Povl Krogsgaard, vice managing director at Arla Foods. "We still haven't reached our goal though, as we as a minimum will have to cut costs by 500m kroner."

Krogsgaard also said that the number of employees who will be fired as a result of the cost cuts are limited.

"My evaluation at the moment is that we will have to say goodbye to no more than 100 employees," said Krogsgaard.

In addition to that is the remaining 100 non-manual workers who still need to be laid off as a result of the 'Project Trim' cost cutting programme, which over a three-year period up till October, 2006 will cut 600 non-manual positions.