Arla Foods said today (8 June) that it would stop producing emmental cheese, a decision that will lead to the closure of a dairy in Denmark.
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The company said the move would allow it to focus on more “strategic” products, milk powder and mozzarella.
Some 70 jobs are under threat following the decision to close the Aars Dairy in northern Denmark.
Arla said earnings from yellow cheese, including emmental, have been under “considerable pressure”. Prices for milk powder, meanwhile, are unusually high” due in part to the drought in Australia.
Production director Niels Lange Jørgensen said Arla wants to switch its milk into more profitable categories.
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By GlobalData“Having analysed the milk powder market, we believe that prices will remain high for at least 1-2 years,” said Jørgensen. “At the same time, we believe that mozzarella has significant growth potential and therefore we’ll need the milk for mozzarella production.”
The company is set to expand its capacity to produce mozzarella at its Rødkærsbro Dairy in central Denmark.
