Trouble Looms as Arla Wades into Slowing Economy
UK - Dairy giant Arla has said more than £35million could be wiped from its profits because of the increasingly difficult trading conditions it is experiencing.
11 December 2008
1 minute read
According to ThePressAndJournal, the profits warning from the Scandinavian-based dairy farmers’ co-operative comes as no surprise.
The news agency says that Arla issued a statement saying that consumers globally were either opting for cheaper dairy products – or not buying milk-based goods at all.
Problems with sterling and the Swedish Krona – its main trading currencies – had also hit earnings, as had a global milk surplus and a melamine contamination crisis in the Chinese dairy industry.
The co-op said it expected profits to fall from the anticipated £106million to between £70.7-£82.5million.
It used the statement to warn on the outlook for ex-farm milk prices, saying that it would be looking for cost savings in its 2009 budgets. Milk bonuses in its core Scandinavian market could fall by as much as 0.7p per litre.
TheCattleSite News Desk
