Arla Foods cuts workforce on Russian sanctions

COPENHAGEN, August 8 (Itar-Tass) - Swedish-Danish milk and dairy product cooperative company Arla Foods halts capacities that provided export to Russia and reorganizes production following Russia’s ban on food import, chief executive Peder Tuborgh said in a press release that became available on Friday. The company’s goal was to maintain profitability focusing on products that ccould be sold on other markets, he said, still considering Russia a strategic developing market for Arla. He expressed hope the company’s products would be able to return to the Russian market as soon as possible as Arla had made long-term investments in the country - in the brand, distributors and customer relations. Last year, Arla exported to Russia about 1 percent of its turnover, or more than 1 billion krones (135 million euros). Early this year the company opened a cheese factory in the Voronezh Region that, the company said, would not be affected by sanctions. Arla exports to Russia are produced at about ten milk facilities, where the company will now shed workforce. It made no sense to manufacture products that cannot be sold anywhere, said press officer Astrid Gade Nielsen. According to preliminary estimates, Arla facilities in Denmark will fire about 75 employees. On Thursday, Moscow responded to Western sanctions with a ban on beef, pork, fruit, fowl, fish, cheese, milk and dairy products import from the EU, Australia, Canada, Norway and the U.S. This amounts to annual import worth $9.1 billion, according to Itar-Tass estimate based on Federal customs Service’s 2013 data. The EU will suffer most as it exported to Russia $6.5 billion of food. Non-EU member Norway will lose $1.2 billion, the U.S. - $843.8 million, Canada - $373.6 million, Australia - $182 million. Learn more on itar-tass.com