With the risk of trade barriers and trade wars, it is crucial for Arla to establish a strong local presence in key export markets to compete on equal footing.

The recent wave of global and political instability makes local presence even more critical to Arla’s export strategy. This approach helps the Danish dairy giant create predictability in global markets marked by uncertainty, political unrest, and looming trade conflicts.

“In markets where we aim for significant growth and in the countries and regions we want to prioritize, we need to establish a stronger local footprint. This is one way to create more predictability in the areas where we wish to operate strategically,” says Jørgen Staarup Christensen, Vice President of Arla International’s commercial division, in an interview with FødevareWatch.

Global markets are highly vulnerable to the threats of additional tariffs and the potential for an outright trade war, which could create instability for exporting businesses.

Arla’s international business spans approximately 140 countries across six continents, making the impact of growing uncertainty significant.

• This will become even more critical for the way we operate going forward. When we are locally established in a market, we operate under the same conditions as local competitors, which can create more predictability because we work within the same regulatory framework, explains Jørgen Staarup Christensen.

Most recently, Arla Foods has made a bid to acquire Egyptian dairy company Arabian Food Industries, strengthening its position in Egypt.

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Photo: Arla Foods