Danish food giant Arla Foods is expanding to sub-Saharan Africa with the establishment of a new subsidiary in Ghana, including a dairy products sales unit and a packaging facility.
The subsidiary, based in the capital city of Accra, would supply products from Arla’s Dano range, which was also distributed in Nigeria and included products such as Arla- and Lurpak-branded butters and cheeses and powdered milk, wrote just-food on 30 August.
The products were in high demand amongst Ghana’s growing urban middle class, the news website reported.
“Ghana us a well-developed food market in west Africa, were Arla has a lot to offer consumers,” said Steen Hadsbjerg, Arla’s vice president of the sub-Saharan business region.
“More families in the growing middle class are increasingly demanding safe and affordable nutrition. West Africa currently faces a milk deficit, which gives us an opportunity to provide dairy products that meet sthe consumers’ needs,” he added.
The new Ghanaian subsidiary, to be called Arla Foods Ltd, would manage a repackaging facility in the Tema Industrial Park, which was currently under construction and expected to become operational during September.
According to Arla, the move was in line with the company’s business growth strategy, which aimed to expand its products into new markets outside the EU to improve the milk price for its 11,200 farmer-owners.
Included in the growth plan was the goal of trebling Arla’s revenues from sub-Saharan Africa by 2020.