Dairy giant Arla pulls money out of Greece

Arla said on Monday that it worries that a Greek exit from the euro could make an enormous dent on its annual revenue.

Dairy giant Arla pulls money out of Greece
Photo: Arla
Danish-Swedish dairy giant Arla has pulled most of its capital out of Greece as that country’s debt crisis comes to a head. 
Arla told news agency Reuters on Monday that it has also cut stocks in Greece in an effort to reduce risk. 
“We will continue our business in Greece no matter what, however if Greece exits the euro, we anticipate that our annual revenue of 30-40 million euros ($33-44 million) could be cut in half,” Arla said in an email to Reuters.
Arla is one of Europe’s largest dairy companies. Began as a co-operative between Danish and Swedish milk farmers back in the 1880s, it now has 12,500 owners based in seven countries: Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. 
Greek banks and the nation’s stock exchange were closed on Monday and the Greek crisis reverberated throughout Europe, including in Denmark where the Danish C20 Cap index opened with a 4.12 percent drop on Monday morning as investors panicked at the news of Greek PM Alexis Tsipras's unexpected decision on Saturday to call for a national referendum on the latest reform package that the International Monetary Fund (IMF)  and other international lenders have demanded that Greece implement in return for more loans.
On Monday, German Angela Merkel and European Commission President Jean-Claude Juncker urged Greeks to vote yes in July 5th Greek referendum on whether to accept creditors' terms for international bailout. 

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


Danish company to scrap plastic caps from millions of organic milk cartons

Dairy giant Arla is to stop using plastic screw tops on its one-litre organic milk cartons.

Danish company to scrap plastic caps from millions of organic milk cartons
Photo: Andrew Kelly/Reuters/Ritzau Scanpix

The decision by the company is part of an effort to reduce CO2 emissions, it said in a statement.

Much of Arla’s packaging – including the one-litre organic milk cartons – is already produced from renewable materials such as plants and trees.

By dropping the plastic caps, the company says it can reduce the CO2 footprint of each carton by 30 percent.

Consumers buy 74 million cartons a year of the product from which the plastic packaging component is set to be removed. Each individual plastic cap is responsible for emissions of 10 grams of CO2, according to Arla.

As such the emissions saving on the caps could reach 740 tonnes of carbon dioxide annually. The figures are based on emissions measured during the period October 2019 to September 2020.

Arla has previously declared its ambition to achieve CO2-neutral operations by 2050.

READ ALSO: Danish dairy giant wants CO2-neutral milk production by 2050

“We and our farmers have an ambitious target of becoming CO2 neutral, and we are reducing are emissions on an ongoing basis,” Arla Denmark country director Helle Müller Petersen said in the statement.

“Part of that work is to reduce the CO2 emissions from our packaging, for example by reducing the use of plastic,” Petersen added.

“It’s therefore an active choice for us to remove the screw top from the organic milk,” she said.