Arla Foods opens cheese production plant in Manama, Bahrain

Danish dairy company Arla Foods has opened a cheese production plant in Manama, Bahrain to address the growing demands for dairy in the Middle East and North Africa (MENA) region, according to the latest dairy industry news.

Arla Foods will invest nearly €50 million ($55 million) in the cheese production factory in the next two to three years to boost its capacity. The Danish dairy company expects to generate 100 plus direct jobs in the coming two to three years in the local market.

The opening of the cheese production plant in Manama follows Arla Foods acquisition of the processed cheese business of Mondeléz International in the region in May 2019, which also gave it 100% ownership of the production facility.

The Danish dairy company said that most of its products sold in the region will now be locally produced at the cheese production factory in Manama, which will help it in further growing its branded cheese production and enhance the overall efficiency in its supply chain.

Photo of the opening ceremony of Arla Foods cheese production plant in Manama, Bahrain

Inauguration of Arla Foods cheese production plant in Manama, Bahrain. Photo courtesy of Arla Foods amba.

By the year 2025, Arla Foods expects to boost its annual production in Bahrain to 100,000 plus tons under the Puck, Arla, Dano, Kraft, and private label brands.

Currently, Arla Foods S.P.C produces nearly 16,000 tons per annum and has an on-site innovation pilot plant. According to Arla Foods, by moving the production of processed cheese and sterilized cream to the Manama factory, the shelf-life of the cheese and sterilized cream products will be improved by up to six weeks as transport and distribution are significantly reduced.

Product categories produced at the cheese production plant in Manama will be primarily sold in the Middle East and also the US, West Africa, and Southeast Asia.

Since 2010, the Danish dairy company claims to have more than doubled its sales organically in the MENA region, which is its largest commercial area outside Europe, owing to strong positions in cheese under the Puck brand, butter and spreads under the Lurpak brand and also milk powder and UHT milk under the Dano and Arla brands.

Last year, Arla Foods’s retail and foodservice revenue in the MENA region was €560 million.

Commenting on the opening of the cheese production plant in Manama, Peder Tuborgh – Arla Foods CEO, said: “The Middle East and North Africa is a priority market for us and the inauguration of this production site in the Kingdom of Bahrain consolidates our commitment to the region. Our decision to make Bahrain our key manufacturing hub for the MENA region demonstrates our confidence in the Kingdom’s rapidly-growing manufacturing sector and alignment with the nation’s Vision 2030 economic diversification plans.”