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Brexit pushes European dairy giant to make cuts

Brexit pushes European dairy giant to make cuts | iNFOnews.ca
FILE - In this Friday, Oct. 20, 2017 file photo, Baker Thierry Kubowicz cuts a part from a 25 kg piece of butter in a bakery in Versailles, west of Paris, France. A major European dairy cooperative says on Friday, April 20, 2018 "2 unexpected developments" - the currency impact of Brexit and the impact of the reversal in commodity prices on fat and protein - have forced them to a more than 400 million euro of savings over the next three years. (AP Photo/Michel Euler, file)

COPENHAGEN – A major European dairy co-operative says that currency swings caused by Brexit are among the reasons it has to cut costs by over 400 million euros ($495 million) over the next three years.

Denmark-based Arla Foods, the maker of Lurpak butter, says “two unexpected developments” — the pound’s drop after Brexit and a shift in commodity prices — are forcing it to act.

CEO Peder Tuborgh says the savings program is “to the benefit of its farmer-owners and further strengthen the company’s investment capability.”

Tuborgh said savings include changing work routines, trimming bureaucracy and cutting costs.

The co-operative is owned by farmers in Denmark, Sweden, Britain, Germany, the Netherlands and Belgium. It employs some 19,000 people.

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Abbey Westbury

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