Danish dairy producer Arla partners with Egyptian company

The Danish dairy giant Arla announced on Thursday it would enter into a partnership with Egypt's largest dairy company, Juhayna, to form a joint venture which would sell Arla's products across Egypt.

Juhayna Food Industries is Egypt's leading manufacturer of milk, yogurt and juice, but the company produces very little butter, cheese and cream, which Arla has specialized in across the Middle East and Africa, Arla said in a statement.

"It is a very good match for both parties," said Rasmus Malmbak Kjeldsen, Arla's director of operations for the Middle East and Africa, adding that "Juhayna has a nationwide distribution network, and we are not competing within the same product categories. Together we now get a broader product portfolio, which strengthens the business of both parties."

Juhayna will own 51 percent of the new joint venture, which is named ArJu Food Industries, while Arla will own the remaining 49 percent.

Moreover, Arla will be in charge of the daily management of the joint venture.

Kjeldsen said the joint venture would initially employ about 40 to 50 employees, but the workforce would exceed 100 within the next year or two.

With production facilities in 11 countries, Arla is the world's sixth largest dairy company and largest supplier of organic dairy products. It's products are sold in more than 100 countries and it employs more than 18,000 employees worldwide. Endit