14 Mar 2019
EUR 102.26 million
Financial institutions and SMEs
|Date of loan:||12 Dec 2013|
|Customer:||Arla Foods Finance A/S|
|Amount in EUR:||EUR 100 million|
|NACE sector / loan type:||Manufacture of food products and beverages|
|Business area:||Industries and services|
The loan has been provided for a research and development programme in 2013–2016. The company’s R&D is focused on packaging development, food safety, shelf life and product development. Arla Foods develops new cheeses, yoghurts, infant nutrition powder, butter products among others. The programme includes establishing an innovation centre near Aarhus in Denmark.
Arla Foods’ R&D unit currently employs about 250 people, mostly based in Denmark and Sweden. Arla Foods is the world’s seventh largest producer of dairy products and the fourth largest dairy cooperative. Arla was founded in 2000 through the merger of the Swedish and Danish cooperatives Arla and MD Foods. The cooperative is owned by more than 12,000 dairy farmers in Sweden, Denmark, Germany, the UK, Belgium and Luxembourg.
Arla Foods’ R&D investments are likely to raise productivity and increase the company’s market access. The new innovation centre will strengthen the Danish food cluster and facilitate cooperation cross sectors. The location offers proximity to raw materials, food ingredients, production, universities and other companies in the cluster. To remain competitive and secure future growth, Arla is investing in development of higher value added milk ingredients and optimising its production process and distribution capabilities.
The R&D activities of Arla Foods are assessed as having very limited environmental impacts.