Arla Foods is to take over Denmark-based co-operative dairy Hirtshals.
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Hirtshals initially approached Arla with a view to merging the companies, and members will now be offered membership of Arla following the takeover.
Hirtshals board of directors will present their decision to the dairy’s co-operative members at an extraordinary meeting on 18 December.
Hirtshals will close down production at its Ingstrup dairy and suspend operations there by the end of the week. Ingstrup employees were informed of the move in a meeting this morning (10 December).
The chairman of Hirtshals, Cyril Post, said he welcomes the fact that the dairy’s future has been settled. Post said it would have been hard to raise the finance necessary to solve the problems currently facing the company.
”We stand to lose 30-40% of our milk from the end of 2008 because several co-operative members have given notice of their intention to resign,” he said. “The financial crisis is also causing many consumers to opt for cheaper products. As this is an area we don’t cover, our financial situation has been extremely difficult.”
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By GlobalData“In this situation, we are pleased that our approach to Arla Foods has been successful and that the dairy will now continue.”
Arla Foods intends to maintain Hirtshals Cooperative Dairy and will, together with the dairy, evaluate its production and dairy products.
“Hirtshals Cooperative Dairy has some interesting products,” said Lars Aagaard, director of Arla’s Danish business. “We will now look into the opportunities for regional milk from North Jutlandian farmers. We will also ensure that it is still possible to buy milk from Hirtshals with the lighthouse on the carton.”
