Brexit, the withdrawal of the United Kingdom from the European Union, is scheduled to happen in March 2019. A major dairy cooperative in Europe says that the currency fluctuations that are caused by the upcoming Brexit are one of the reasons why the said cooperative was ultimately forced to reduce its costs by more than 400 million euros (approximately $495 million) over the coming three years.
Arla Foods is based in Denmark. The cooperative is particularly known as the maker of Lurpak butter. It said that “two unexpected developments” — a change in the prices of commodities and the decline of the pound after Brexit — are forcing the cooperative to impose new measures.
Peder Tuborgh, the Chief Executive Officer of Arla Foods, says that the newly-introduced savings program of the cooperative is “to the benefit of its farmer-owners and further strengthen the company’s investment capability.”
The CEO of Arla Foods disclosed that the said savings would include cutting down on bureaucracy, changes in the work routines of the employees of the cooperative, and the reduction of costs.
The said cooperative is owned and operated by the farmers in Sweden, Denmark, Germany, the United Kingdom, Belgium, and the Netherlands. Arla Foods has approximately 19,000 people employees.