Arla Foods to ensure responsible approach to African markets

  Arla plans to grow in several African markets in the coming years, but this growth must be achieved in a responsible way that does not bring unintentional consequences for the local farming industry and its related communities. Therefore, Arla is implementing an updated human rights policy throughout its organisation to ensure that Arla’s global business does not leave a negative footprint in developing countries.
 Arla intends to increase its current business in sub-Saharan Africa from the annual revenue of approx. 650 million DKK to approx. 2 billion DKK in 2017. This is to be achieved through sales of powdered milk and UHT milk, which is in high demand among the rapidly growing middle class in and around the big cities.
 Today Arla sells products in Nigeria and the Ivory Coast, but Arla’s strategic focus is also directed at markets like Ghana, Senegal, Congo as well as other markets in East Africa.
 It is the clear ambition of Arla that its activities and growth plans in Africa or other parts of the world do not bring negative consequences for the local farming sector. Therefore, Arla has introduced a list of initiatives to ensure the following:
 – Arla will update its human right policy in its code of conduct in order to comply with the UNGPs and the OECD guidelines by 15 July 2015,
 – Arla will introduce due diligence procedures complying with the UNGPs and the OECD guidelines by 31 October 2015 ensuring that Arla is well placed to manage the human rights impacts of its global business activities in accordance with international human rights guidelines.
 – Arla’s human rights due diligence procedures shall identify and prevent as far as possible actual and potential adverse human rights effects caused by Arla’s business activities or to which the company may contribute, in particular in relation to our ongoing or planned activities in developing countries.
 – Arla will pilot test its due diligence procedures by conducting and publicizing human rights impact assessments related to its business activities in Ivory Coast and Nigeria. The results of the assessments will be made public by 1 April 2015 and 1 May 2015, respectively.