Arla to sell dairy unit in Poland

Swedish-Danish cooperative Arla Foods is planning to sell its production facilities in Goscino, Poland, in order to centralise its current production of mozzarella cheese at its dairy plant in Rødkærsbro, Denmark.

According to Alra, the move will make production to its European markets more efficient, benefiting both farmers and consumers.

Arla has initiated negotiations with a potential buyer to take over its dairy in Poland and a letter of intent was signed by both parties last week.

Arla, which expects to close the transaction by the end of December, did not reveal the details of the buyer.

Arla said that efforts to sell the dairy in Goscino will have no effect on the company’s sales activities in the Polish market.

Arla Foods senior vice president Hans Christensen said that the sale makes sense, as most of the company’s mozzarella business is elsewhere in Europe and is not a part of the strategic plans for its brands in the Polish market.

"Our priority in Poland is to offer the Polish consumers high-quality butter and cheese products and to continue our search for business partner relationships, joint venture opportunities and acquisitions that will support our category focus," Christensen said.

The dairy plant in Poland has a production capacity for up to 10,000tpa of mozzarella.