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Arla sets sights on Sub-Saharan Africa

Source:Ringier Food Release Date:2015-01-15 250
Food & Beverage
With plans to expand in Africa, the company outlines initiatives related to its conduct of business in the region

EUROPEAN dairy group, Arla Foods will increase its business in sub-Saharan Africa, from DKK 650 million to DKK 2 billion in 2017. The company sells its powdered milk and UHT milk products in Nigeria and Ivory Coast, and will develop markets in Ghana, Senegal, Congo as well as in East Africa.

In line with growth plans, Arla updated its human rights policy for the proper conduct of business in the region. It maintains this as necessary to ensure its activities “do not bring negative consequences to the local farming sector”. 

These initiatives are:

- 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 publicising 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.

Finn Hansen, executive vice president and head of international business group, Arla

“Arla is taking these active steps because it is important to us as a cooperative farmer-owned dairy company to be able to document to ourselves, our customers and consumers that we are doing things properly, even in this area as well. We have received advice from different NGO’s, including Action Aid, who have helped us focus on these things,” said executive vice president, Finn Hansen, who is head of Arla’s international business group.

“A more responsible and sustainable food production is the key to fighting poverty and creating global development for the benefit of all. Therefore, it’s a very positive move that Arla is now engaging itself in a more systematic way to understand and hinder potential unintended negative effects of the company’s business for local farmers,” said secretary general in ActionAid Denmark, Frans Mikael Jansen. He added, “Arla has done well to acknowledge that the time is right to support the company’s good intentions with hard data and know-how when it comes to driving a globally responsible commercial business. Arla is about to lead the way in its industry when it comes to responsibility. We believe both the company and the less advantaged of this world will benefit from this. Action Aid looks forward to following how Arla will implement this new approach and will offer any advice and guidance required.”

In addition to these initiatives, Arla is also working with other NGO’s to develop the local dairy sector in African countries.

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