Arla Foods invest in production, negotiate reduction in temporary work

Arla Foods have unveiled plans to invest EUR335 million in existing production sites in 2017. This is a 50% increase in investments from the previous year. The production upgrades will facilitate the company shift into more branded sales and food service categories, dairy proteins and spreadable cheese and cream cheese categories.

Arla has been squeezing costs to free up money for investment and IUF German affiliate, the NGG reports the company has made EUR100 million in savings including through restructuring and job losses.

On a positive note, the NGG has reached some agreements with Arla over the reduction of temporary workers and increase in permanent jobs.

IUF affiliates with members in Arla will meet in Copenhagen on March 13 and the IUF and Arla will next meet on March 14.