RIYADH: Danish Arla Food, the largest dairy producer in Scandinavia, expects to raise output from its Saudi plants as it plans to add more Starbucks ready made and its own Puck products.
The Danish producer, known for making Lurpak butter, expects its Saudi output to go up by 10 percent in 2022 from 2021 after starting its new production lines in September, according to a statement. The company didn’t say how much it’s producing.
Arla invested SR64 million ($17 million) in the new production lines to export more products to other countries in the region. It invested SR127 million over the past five years in expanding their storage facilities, the statement said.
The company said new lines are adding more Saudi jobs, with a line fully operated by females.
The size of Saudi dairy market is expected to reach $7.94 billion by end of 2026 up from $5.72 billion in 2020, the statement said, citing TechSci Research firm.
Starbucks signed a 21-year agreement in 2018 with Arla Foods, giving the latter license to continue to manufacture, distribute and market Starbucks premium milk-based ready-to-drink coffee beverages for Europe, Middle East and Africa.
