Arla moves to tap US market

Published 23 March 16

Arla plans to enter the US Cheddar market through a new joint venture with US farmer-owned dairy co-operative, Dairy Farmers of America (DFA). Arla says it will target the premium Cheddar market, as very few US brands currently offer Cheddar made without using growth hormones or artificial ingredients.

Milk will be supplied by eight DFA farms, produced to standards similar to Arla’s existing Arlagården® quality scheme. Although the venture doesn’t use milk from Arla’s European members, the processor says adding Cheddar to its US portfolio will help make it more attractive to American retailers and drive sales of its European-made products. Also, direct access to the American domestic market is currently limited by the US’s quota restrictions on Cheddar imports.