Rising food prices lead to lower demand for dairy products in Europe

The Swedish daily Svenska Dagbladet reported on 9 February that higher food prices have led to a decrease in the number of dairy products purchased by the Swedish population, as highlighted in Arla Dairy Group’s results report for 2022. Compared to 2021, demand for dairy products in Europe has fallen by 5%. However, more expensive food and raw material prices led to an increase in Arla’s turnover last year. Group-level turnover rose 23.2 percent to 13.8 billion euros from 11.2 billion euros in 2021. 2022 will be dominated by inflation and economic uncertainty for our owners and the Group, said Arla Group Chairman Jan Toft Nørgaard. But despite the challenging environment, we have achieved a good result.

The Arla Group’s Swedish business grew turnover by 11.4 percent to €1.6 billion in 2022, compared with €1.4 billion in 2021.Kai Gyllström, CEO of Arla Sweden, said that in the second half of 2022, sales fell as households and businesses increasingly reacted to rising inflation, and sales of products under Arla’s strategic brands in the year a total decline of 3.9 percent.

Source: Economic and Commercial Section of the Royal Embassy in Sweden


Post time: Feb-24-2023