Arla Foods has confirmed it will cut 79 jobs in Denmark as it readjusts production in the wake of Russia’s ban on dairy imports from the EU.
Forty-eight hours after Russian President Vladimir Putin issued a decree blocking the import of a range of foodstuffs from markets including the EU, Arla has told just-food between 50 and 75 jobs would be axed from its dairies in Denmark that supplied Russia.
Russia only accounts for just over 1% of Arla’s annual turnover but it was one of the overseas markets on which Arla was focusing to drive its growth. Sales had increased at a double-digit rate over the past three years. Arla’s annual sales in Russia stand at around DKK180m (US$32.3m).
Arla started local cheese production in Russia earlier this year but that only accounts for 1% of its sales in the country.