Arla Foods decides to close cheese production at Lillebælt Dairy in Denmark

Global dairy company Arla Foods has decided to close its Lillebælt Dairy plant in Denmark, which is currently engaged in the production of white mould cheese under the Castello trademark.

The closure of the dairy follows the decision to move the production of white mould cheese to Troldhede Dairy in Denmark to increase efficiencies.

Arla Group vice-president Lars Dalsgaard said: “Having conducted a thorough analysis of Lillebælt Dairy, this has shown that it is no longer profitable to continue production.

“It will require substantial investment to secure long-term production at this site. Similarly, by combining the production of white mould cheese at Troldhede Dairy, our costs will be lowered, which will benefit our farmer owners.”

The dairy company intends to close its Lillebælt Dairy in 2019.

The closure of the facility is expected to affect 66 employees, who would be allocated into new positions.

The company is also planning to place the affected colleagues at its Korsvej and Taulov dairies, which have benefitted from an investment of more than kr157m ($23m) in recent expansions and production developments.

Arla Foods is owned by 12.000 farmers across Europe.

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Image: Arla Foods' Lillebælt Dairy plant produces white mould cheese under the Castello trademark. Photo: © Arla Foods.