Denmark-based dairy giant Arla Foods has announced that it has postponed plans for a new dairy in the Dominican Republic.
“Following a lengthy examination of the potential for setting up milk production in conjunction with the local distributor, Mejia Arcala, Arla Foods and Mejia have decided to postpone a decision until further notice,” Arla said.
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The company said that it still believes the concept of establishing a new dairy for long-life milk in the Dominican Republic is sound, but that the timing is wrong considering current economic conditions, including a 40% devaluation in the Caribbean island state. However, Arla said both companies would continue to monitor developments.
“We would like to produce milk in the Dominican Republic,” said Arla Foods’ deputy managing director, Andreas Lundby. ”But without Mejia Arcala to distribute the milk, the project cannot currently go ahead.”
